GM may not know how to design a car people want, but it does know a thing or two about bailout arbitrage. Before GM's first ride on the bailout/bankruptcy merry-go-round, it agreed to try to spin off its German arm, Opel. Having missed out on the opportunity to get Opel fully involved in the bailout sweepstakes the first time around, GM looks set to make sure the US government gets stuck with part of the bill the second time.
General Motors is looking at shelving a German-backed bailout of its Opel European car arm amid growing fears that long-running talks on the deal will end in failure. The US carmaker and its advisers are studying a scenario that would see GM abandon the German plan and instead raise roughly €3bn ($4.3bn) of rescue funds for Opel and its British Vauxhall brand from the US and other European governments, including the UK and Spain.
And with that, the seeds of the forthcoming Troubled Auto Relief Program were sown.
GM looks at shelving Opel plan [FT]
Posted by guest , Aug 24, 2009 3:01PM
Grey Goose Michaels
Posted by guest , Aug 24, 2009 3:07PM
huh?
Posted by guest , Aug 24, 2009 3:52PM
Something told me this was a GM story. And I don't mean the automaker.
Posted by Mark Klein MD , Aug 24, 2009 4:12PM
The problem with GM is that they aren't making cars that people want. They are also losing money on each car they produce. Despite this, we need to support this company so our entire manufacturing base doesn't move to China.
Posted by guest , Aug 24, 2009 4:48PM
I have been more or less closely involved with the transaction for the last couple of months one of the several other sides and all I can say is: Well played, GM! A lot of things make perfect sense now.
Posted by guest , Aug 24, 2009 5:13PM
I agree with GM! Opel's are actually very good cars. They should not allow Russians or Germans to get a free ride. Basically, they should shut down the expensive German plants and move production to Eastern Europe or Turkey. Screw the Nazi Unions!
Posted by Anal_yst , Aug 24, 2009 5:15PM
No, no NO NO NO NO Mark Klein MD is NOT ok for Dealbreaker! I should, however, thank him for finally annoying me back in ~2006 enough to avoid NY Times Dealbook permanently, but yes, please block that IP before he gets freightrained by the mob here, for his own good.
Posted by guest , Aug 24, 2009 6:04PM
Mark Klein sucks, get the hell away from here. I hope this is a joke. I'm with anal_yst, that giant douschebag needs to go back to the nyc. what a pretentious and idiotic cocksucker
Posted by guest , Aug 24, 2009 7:14PM
@3 - I was also duped by that cruel hoax.
at first glance, I thought "Oh thank God, GM got a job at Old Navy"
Posted by guest , Aug 24, 2009 10:14PM
wow, you guys sure make some worthless comments on here.... I came to this site looking for insight, but instead just got inanesite... I won't be back.