CEO of General Motors Europe Carl-Peter Forster attends a press conference during the first media day of the 79th Geneva Car Show at the Palexpo in Geneva March 3, 2009.
According to grave reports, General Motors Europe will be forced to completely shutdown during the second quarter of 2009 unless immediate financial assistance in rendered. In a live address from the Opel booth at the Geneva Motor Show, GM Europe President Carl Peter Forster made a desperate plea with European politicians to grant GM’s request for emergency aid. Specifically, GM wants the European government to fork over €3.3 billion EUR (approximately $4.14 billion USD) to keep the company afloat through 2011. By that time, Forster predicts GM will once again be turning a profit.
Lacking any private investors, should the government refuse to render any assistance, GM Europe will completely run out of funds before the end of Q2. When the well runs dry, GM will be forced to implement a total shutdown that Forster estimates will put roughly 300,000 people out of a job. Should the government acquiesce, however, the horizon still looks bleak for some. With federal funding, GM would immediately launch an aggressive restructuring plan to reduce operational costs by 30%, closing down factories cutting jobs. Admitted Forster, “The alternatives are very unhappy, whichever way you look at it.”
Source: Detroit News
Image Cred: Reuters Pictures