Commentaries
Now raising intellectual capital
Lower Opel costs to help government aid
General Motors’ decision to scrap the sale of Opel rests on the carmaker’s calculation that the hole in its European unit’s finances is not as deep as previously feared.
Governments should welcome the lower demands on taxpayers with open arms. But there is still some horse trading to be done to get everyone on board.Â
GM’s chief executive Fritz Henderson is due to present his plans for Opel next week. He has good reason to be bullish.
GM’s previous forecast that Opel needs $3.3 billion to keep going until 2011 appears to have been sharply revised. Some in the industry think the amount required could be nearer 60 percent of that figure — some $2 billion.
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The Wall
