Metals and Mining

Germany Fumes Over GM Ditching Opel Sale To Magna

Stock quotes in this article: F , MTLQQ , VOW  

The cancellation took the newly elected government by surprise, coming just after Chancellor Angela Merkel left the U.S. after a well-received speech to a joint session of Congress.

In Berlin, Economy Minister Rainer Bruederle vowed Wednesday to recover the €1.5 billion in bridge financing.

"We will get the taxpayers' money back," he told reporters, adding that GM's move was "totally unacceptable."

GM Europe spokeswoman Karin Kirchner said the company was prepared to repay the €1.5 billion. "If we're asked, GM will repay the bridge loan in question," she said.

GM's decision also caught the Russian government unawares. Dmitry Peskov, spokesman for Russian Prime Minister Vladimir Putin, called it "astonishing."

The mood was opposite in Britain, where GM Europe builds its Vauxhall brands. British workers had feared the strong German government support for Magna meant they — along with Opel workers in Spain and Belgium — would take the brunt of any restructuring.

Tony Woodley, a former Vauxhall worker and joint leader of the Unite union, called GM's move a "fantastic decision" for the 5,500 workers at the plants in Ellesmere Port and Luton.

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