TEXT OF STORY
Stacey Vanek-Smith: Executives from General Motors have been in Germany this week, seeking state aid for the company’s struggling European division. But, as Stephen Beard reports, they’re getting the cold shoulder instead.
Stephen Beard: Germany had offered $6 billion of aid if GM sold its European Division to the Canadian parts-maker Magna. Magna had promised to protect German jobs. But that deal is off. GM is keeping the company. And so, says the German government,the $6 billion is off the table too.
GM is not getting any cash from the German taxpayer. But, says David Bailey of the Coventry Business School, GM can look elsewhere.
DAVID BAILEY: The danger here is that GM touts its business around European capitals saying: “Give us a subsidy and we’ll keep production in your country.” And engages in a divide-and-rule tactic.
He says half of GM’s 50,000 European jobs are in Germany. The German government may have little choice but to cough up in the end.
In London this is Stephen Beard for Marketplace.
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.