Germany Tells GM To Finance Opel Restructuring

German Economy Minister said General Motors has to be responsible for paying for the restructuring of subsidiary Opel after calling off sale to Magna and Sberbank.

BERLIN (AP) -- German Economy Minister Rainer Bruederle said Wednesday he told General Motors Co. officials at a meeting in Berlin that their company has to be responsible for paying for the restructuring of subsidiary Opel.

GM last week called off the planned sale of Germany-based Opel to car parts maker Magna and Russian lender Sberbank. Chancellor Angela Merkel had favored that deal to save jobs.

Merkel now says she wants GM to present a restructuring plan that gives Opel Europe and the German sites the chance of a good future.

Following meetings with new Opel and Vauxhall head Nick Reilly and GM official John Smith, Bruederle said he had reiterated Merkel's message that the company needs to pay for the main part of the restructuring itself.

Bruederle said the restructuring is expected to cost some euro3.3 billion ($4.96 billion), and added that he expected that GM would present a plan for it soon.

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