GM withdraws Europe loan applications

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General Motors announced yesterday that Opel/Vauxhall ‘have decided to withdraw all applications for government loan guarantees across Europe’.

The GM statement said: ‘There have been no material alterations in the funding requirements of Opel/Vauxhall as set out in the Viability Plan announced seven months ago.

‘The validity and reasons for requesting government guarantees have also not changed, but the process has proven to be much more complex and longer than anticipated and the results are still not finalised or certain.

‘In these circumstances, and given the need to progress the plan quickly, it has been decided to fund the requirements internally.’

Nick Reilly, President of GM Europe and Chairman of the Management Board of Opel/Vauxhall, said: ‘We appreciate the support indicated by certain governments, especially the UK and Spain, but we need to move on.

‘The decision of the German government last week was disappointing and means that the conclusion of these guarantees is again likely to be months away.

‘To be clear, our funding needs have not changed and we were led to believe that loan guarantees made available to other European companies under the EU program to help offset the impact of the global economic crisis, would be equally available to Opel/Vauxhall.

‘But, after a very long process defined by governments, this has turned out not to be the case.

‘We are grateful for the decision and support of our parent company, which will allow us to move forward with confidence in this very competitive industry.

‘We cannot afford to have uncertain funding plans and new time-consuming complex negotiations at this time when we need to keep investing in new products and technologies.’