Opel's appeal for state aid turned down (Opel is GM's German subsidiary)

[FarCenter]

http://www.dw-world.de/dw/function/0,2145,12215_cid_3783069,00.html

The German government has rejected a plea from General Motors (GM) for targeted aid for German car factories. GM's German subsidiary arm, Opel, had earlier written to Chancellor Angela Merkel to enlist her support for a 40-billion-euro loan from the European Investment Bank (EIB) to carmakers. Opel also requested soft loans to German buyers of new cars and a government buy-in of elderly cars to stimulate the flagging German car market. Last week Chancellor Merkel's ruling coalition agreed on an economic stimulus package that includes a suspension of vehicle tax on new cars bought in Germany. But some Social Democrats are calling for preference to be made for cars which use less fuel.