The western German state of Hesse, a locus of Opel operations for Germany and Europe, stands to lose much if Opel can't pay its bills. Roland Kock, the state's caretaker premier, has said the funding necessary to secure Opel's future lies at roughly €1 billion, reports Automotive News Europe. That figure has also reportedly been confirmed by a source within Opel.
Of that huge sum - equivalent to about $1.26 billion, about two-thirds would be levied on the federal government's coffers, with the four states that house Opel operations supplying the rest.
Opel's deputy supervisory board chief says the company won't need the money if GM continue to repay the money it owes Opel - money essential to Opel's continued new model development. If GM defaults on those loans, however, Opel will need the assistance to avoid going under itself.
In the U.S., there are several efforts under way to secure funding for the auto industry, and though the idea holds a great deal of popular support, getting the proposal through Washington is not going as smoothly as hoped. If the aid does not come in time, many are predicting millions of job losses and global repercussions throughout the automotive and ancillary industries.
