The German arm of General Motors Corp. (NYSE:GM) moved closer to a bailout of its own on Friday, as Adam Opel GmbH
struck a deal with its parent to restructure its operations and sell as much as 25% of itself to outside investors.
The deal is part of Opel's effort to raise about €3.3 billion ($4.2 billion) from the German federal and local governments. German Chancellor Angela Merkel, facing an election in September and eager to save as many of Opel's 25,000 German jobs as possible, has said that her government will consider providing assistance once it sees Opel's restructuring plan.
GM Europe president Carl-Peter Forster told reporters Friday that no firm decisions have been made on plant closures or layoffs, saying a plan will formally be presented to the German government on Monday.
GM acquired Opel in 1929, and the German company has served as the Detroit-based automaker's primary brand in Europe, a region where General Motors lost nearly $2 billion in the fourth quarter. Opel's restructuring is part of GM's broader effort to streamline its operations and remain solvent in what is shaping up as the worst year for global auto sales in more than two decades. -
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