GM European wing talks aid

Marketplace Staff Mar 17, 2009
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GM European wing talks aid

Marketplace Staff Mar 17, 2009
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Renita Jablonski: Germany’s economic minister is in Washington for a second day of high-level meetings. Today, a sit-down with U.S. Treasury Secretary Tim Geithner. Yesterday, there were talks with top brass from GM on whether the company’s European operations can expect financial help. Christopher Werth reports.


Christopher Werth: February’s numbers show sales for GM’s European divisions, Opel and Vauxhall, are down 22 percent, much further than the European average.

Many of the same worries that have plagued the beleaguered carmaker in the U.S. are keeping European buyers at bay, according to Tim Uquart of IHS Global Insight:

Tim Urquart: Buyers will be worried about buying from a manufacturer that¹s potentially going out of business. There’s all kind of issues regarding, you know, will warranties be honored, you know residual value, spare parts, all those things.

Uquart says some decision should be made soon to avoid further damage. But Germany is reluctant about GM. Ministers are looking for assurances from the company on its own financial contribution to its European operations, and that no government aid from Berlin ends up in Detroit.

In London, I’m Christopher Werth for Marketplace.

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