Germany Wants Contribution from General Motors for Opel (MGA)

General Motors Co, wants help from various European governments to run its unit for Opel. However, Germany wants General Motors to increase its own contribution in the Opel unit first.

In response to this, General Motors says that it will allocate 600 million Euros ($836 million) for Opel’s restructuring. General Motors, however, needs the additional amount of 2.7 billion Euros from the various European governments of the U.K, Spain and Poland. The reason why the German government is apprehensive about helping GM run Opel is because last year, when it gave money to GM to keep Opel afloat, GM backed out of an agreement to sell the unit to Magna International Inc,(NYSE: MGA). Magna is a bidder favored by the German government.