Opel and Saab, two of the European auto industry’s heavyweights are on the verge of collapse, now that US-based car manufacturer General Motors cracked up. In Romania, the new car market has significantly nosedived in January: the sales shrank to 8,187 cars, namely 65% fewer cars delivered from prior year period.
Opel and Saab, on the verge of collapse
General Motors’ European brands are on the brink of downfall, with Opel seeking more state funding and Saab’s plea for 590 mln dollars state aid from the Swedish government, Reuters informs.
After filing from protection from creditors, Saab said it would draft a reorganization proposal within three weeks, while the court filings revealed Saab’s expected losses in 2008 and 2009 at roughly 3 billion Czech korunas (340.1 million dollars).
“Saab will draw the reorganization proposals, which will include the concentration of design, engineering and manufacturing activities in Sweden”, reads the press release remitted by the car maker, adding that the reorganization process will last three months and will need independent funding.
Opel, the first European carmaker to seek a government bailout, needs 3.3 bln euros liquidity to hold out amid crisis, according to a company source cited by German media.
Opel representatives, source says, have already returned to Berlin with a bigger request, after a prior solicitation of 1.8 bln euros in guarantees.
Situation can become dramatic in March
The steep depreciation of the situation in the European car industry has determined Opel representatives to estimate 2.5 bln euros loan guarantees aid from Berlin.
A source at the German government said Opel had explained the situation could become dramatic by March, with its liquidity dried out, with the bankruptcy threat looming over the car maker’s balance sheet.
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