German rescue fund to discuss extending Opel aid

FRANKFURT, May 31 (BestGrowthStock) – Business advisors to Germany’s
rescue fund meet in Berlin on Monday to discuss whether to
recommend extending over 1 billion euros ($1.23 billion) in loan
guarantees to German carmaker Opel.

Parent General Motors [GM.UL] had requested state aid from
European governments to help fund a costly turnaround plan at
Opel that would shrink its production and labour capacity by
about 20 percent.

GM’s own return to the black has provided opponents within
Germany plenty of ammunition to argue against aid to Opel

The advisors to the rescue fund are mainly former captains
of German industry, such as ex-Schering CEO Hubertus Erlen or
industry lobby group BDI’s erstwhile head Michael Rogowski.

Even if they agree on a recommendation on Monday, the
decision ultimately remains a political one, and German
Economics Minister Rainer Bruederle has indicated more time will
pass before the issue can finally be settled. [ID:nLDE64O0J4]
($1=.8163 Euro)

Investing Analysis
(Reporting by Christiaan Hetzner; Editing by Jon Loades-Carter)

German rescue fund to discuss extending Opel aid