The new head of General Motors'European operations, Nick Reilly, expects the German government to contribute state aid for the restructuring of its loss-making Opel brand. Speaking to reporters on Saturday, Reilly said he continued to receive positive signals from European governments including Berlin regarding his plan to reduce Opel's headcount by about 8,300 people, most of which in Belgium and Germany.
"I am not sure when the decision for financial aid will be made," he said, adding that he did not foresee any difficulties with EU competition authorities blocking government support. Reilly said that Ed Whitacre, GM's chairman who has taken over as chief executive after sacking Fritz Henderson this week, had not told him to deepen or accelerate the restructuring of Opel.
Nevertheless he warned that plant capacity, not just people, would need to be taken out of Opel as well in a clear warning that Antwerp's future was in considerable danger. He said that GM had signed a document that foresaw building two small SUVs in Antwerp, but said plans had since changed and any attempt to legally enforce the contract would be "very, very detrimental for the company."
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