Currently reading: Germany rejects Opel-Vauxhall aid

German economy minister Rainer Bruederle has rejected a request for government aid

German economy minister Rainer Bruederle has rejected a request for government aid by General Motors for Opel-Vauxhall.

Opel had been seeking loan guarantees totaling 1.1 billion euros (£830m) from Germany, where it has four plants.

Bruederle said he felt GM can afford to cover the costs itself because it has about 10bn euros (£8.2bn) in free liquidity after fully paying back credits from the US and Canadian governments.

The decision undermines loss-making Opel-Vauxhall's 3.6 billion euro (£3bn) restructuring plan.

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