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Opel applies for €1.5bn aid to fund revamp

Opel applies for €1.5bn aid to fund revamp. (REUTERS)

By Reuters

General Motors unit Opel has asked Germany for €1.5 billion (Dh7.5bn) state aid to help fund a restructuring plan including an €11bn investment and sweeping job cuts in a drive to break even by next year.

Unveiling details of the car maker's eagerly awaited restructuring plan yesterday, Opel Chief Executive Nick Reilly said the car maker would seek a further €1.2bn in aid from the UK, Spain, Poland and Austria.

Opel and its sister brand Vauxhall will renew four-fifths of its product line even as it shrinks to a profitable size the company said in a press conference in Frankfurt. "We now have a road map, we know where we are headed and we are working with all our partners so we can switch into high gear for a successful future," he said.

Labour leaders and management have clashed over the project. Reilly said the restructuring will use up €1bn of Opel's total €3.3bn revamp funding needs.


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