GM’s European division seeks bailout

Marketplace Staff Mar 4, 2009
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GM’s European division seeks bailout

Marketplace Staff Mar 4, 2009
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TEXT OF STORY

Steve Chiotakis: Well, the American auto industry continues to reel this morning from news that sales fell last month by nearly half. And the situation’s not much better in Europe. That has General Motors’ European division looking for a bailout there. Christopher Werth reports.


Christopher Werth: GM’s financial troubles are on display at the Geneva motor show this week. That’s where the head of GM Europe said the company’s burning through money to keep its European operations afloat.

Now GM says 3,500 jobs could be cut in Germany if the country doesn’t step up. GM wants more than $4 billion in aid from the German government.

The job cuts would come at its German subsidiary, Opel. The company says the plan would be to grant Opel more autonomy, with GM as a majority stakeholder. But German Chancellor Angela Merkel isn’t showing any desire to bailout the carmaker.

And Germany’s not the only European door GM is pounding. The company has been in talks for aid with Britain, Spain and others with GM factories. It¹s estimated that up to 300,000 European jobs, from suppliers to dealers, depend on the carmaker.

In London, I’m Christopher Werth for Marketplace.

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