California Autos Examiner

Friday, February 27, 2009

Spin Cycle: Opel Will Do a Partial Spinoff

I wonder if German Chancellor Angela Merkel could use a back rub now? The Chancellor is up for re-election in September and needs to save as many jobs as possible. Upwards of 25,000 such jobs are on the line at GM's subsidiary Opel. However, European governments are playing hardball with GM when it comes to unlocking the coffers and doling out the cash. In the case of Opel, the pressure is on for GM to cleave the division from its holdings. A compromise means that GM would split off Opel into a separate unit that would remain linked to Detroit while letting outside investors take a stake of more than a quarter.

source: Automotive News

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