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GM Says Opel To Pay For Restructuring

After deciding to keep its European unit, General Motors CEO Fritz Henderson said Thursday Opel will pay for most of the $3 billion it needs to restructure.

DETROIT (AP) -- General Motors Co. CEO Fritz Henderson said Thursday its European Opel unit will pay for most of the $3 billion it needs to restructure.

Henderson's comments came two days after GM's board decided to keep Opel, rejecting a deal to sell 55 percent of European operation to a group led by Canadian auto parts maker Magna.

He said Opel's cash situation has improved so it could be the primary funding source for the restructuring.

Henderson said GM also could charge Opel lower royalties for GM technology, and it will seek aid from European governments.

GM will seek aid for Opel from Spain, Germany, Great Britain and Poland, according to Henderson.

The automaker has said it would cut about the same number of jobs as Magna would have, or about 10,500. Henderson would not give details of which plants would be closed.

GM soon will appoint an Opel transition team, Henderson said. He conceded that GM has a lot of work to do to fix its relationship with European labor unions.

At the same time, Henderson said GM can fund its global business from the $50 billion it has received from the U.S. government.

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