GM a significantly higher proportion of the Opel remediation should brace themselves. Source: Reuters
BERLIN / FRANKFURT. The U.S. car giant General Motors can only hope for state assistance from Germany when he approach his rehabilitation for Opel significantly mending. GM had to take the place offered 600 million euros from at least half of the group at 3.3 billion euros estimated reclamation costs for its European subsidiaries own, it says after the Handelsblatt information in government circles. This would represent a sum of at least 1.65 billion euros. "Otherwise it will be difficult to grant state aids," it says.
State aid may not be spent outside of Europe
Today, the Committee will advise the guarantee of federal and state governments over the GM concept. There, it is generally agreed that the proposals of the U.S. are not sufficient group. "The shareholder contribution from General Motors in the recovery concept is far too low and needs to be increased significantly," said the Secretary, Hessian Ministry of Finance, Thomas Schäfer (CDU), the Handelsblatt. The Guarantee Committee will now begin to formulate a list of all other questions to GM.
"A key point in the assessment will also be, as GM tries to prove that a European credit support is not sponsoring other activities of the Group outside Europe," said Schafer. Similar requirements were also imposed in the Federal Government. Evidence that is not government money flows into the U.S., but this should be easier than last year. Because GM has been abolished in the meantime, numerous cross-holdings of GM-daughters and the group’s members.
With tension in the house of Federal Minister of Economics Rainer Brüderle (FDP) also expects the opinion of economic experts from PricewaterhouseCoopers (PwC), which will illuminate the recovery plan as officially starting today. The report will then be the basis of a final decision of the Committee on State aid guarantee. PwC should find that the Rüsselsheim carmaker is not a victim of the current crisis, as he had for years is in the red, no money will flow. According to information of this newspaper there is a tendency in the Federal Ministry of Economy to Opel will not help financially in their efforts.
However, the process is to be completely open. "Problems should give it, if GM mending its reorganization plan and shortly before the state election in North Rhine-Westphalia on 9 Of May has submitted an application, "said a confidant of the case. A few days ago the Prime Minister of the Opel states of Hesse, Thuringia, North Rhine-Westphalia and Rhineland-Palatinate had demanded in a letter to the Chancellor speedy negotiations for Opel assistance.
Requirement of a decision should also be a preliminary Brussels. Germany insisted on the agreed in December examination of the reorganization plan by the EU Commission, had the Secretary to the Federal Ministry of Economics Jurgen Homann emphasized late last week.
Debate salaries offset by GM on the defensive
The U.S. company itself has delivered just before the Advisory Committee’s opponents in the guarantee of possible state aid new ammunition. The group stated that the Chief of the U.S. carmaker, Ed Whitacre, will receive this year, nine million dollars (6.7 million euros) for his services. As the company announced the SEC to set the salary for 2010 from a salary of 1.7 million U.S. dollars, and of GM shares worth 7.3 million U.S. dollars. Starting in 2012, Whitacre within three years worth of stock would receive 5.3 million U.S. dollars. Furthermore, are not transferable shares to the value of two million dollars, part of this package to create long-term incentives. The U.S. Treasury has agreed to the implications of that statement already.
Also Whitacre predecessor Fritz Henderson will therefore continue to work as an independent consultant for GM. For 20 hours work a month he would receive around 59 000 dollars, it is clear from the papers of the SEC. The contract is due to 31 Month of December could be extended. Henderson had been driven only a few months of Whitacre from office.