Money Talks | 20.11.2008 | 00:30
Will the German Government Rescue Opel?
One of the main victims of the global financial squeeze has been the auto industry. Here in Germany, car-makers BMW and Daimler both temporarily stopped production due to a lack of orders. And now Opel has had to go cap in hand to the German government to seek federal aid.
The curious thing is Opel itself has been working profitably and effectively after several streamlining measures over the last few years. The problem is Opel’s US parent company General Motors could be on the verge of bankruptcy. So, worried executives have said Chancellor Angela Merkel’s government needs to guarantee around one billion euros in loans to safeguard jobs in Germany. On Monday, ministers and executives held their first round of meetings in Berlin, and a decision is expected by Christmas. Money Talks spoke to Dr Christian Dreger, head of business forecasting at the German Institute for Economic Research and asked him what message a government bail-out would send.
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