In response to the uproar caused by its choice to throw out months of negotiations with parts supplier Magna International Inc., General Motors Co. confirmed that it is preparing a plan to restructure Opel. It also said that it’s possible that it would pay off debt due this month. Last week, the GM board decided to keep Opel and to seek government aid in Europe for a restructuring plan expected to cut thousands of jobs. German Chancellor Angela Merkel, who had heavily supported for the Magna-led takeover of Opel, discussed with U.S. President Barack Obama her concerns about the decision. Through the phone, President Obama told Merkel that he had not been involved in the sudden decision, which has angered the German government. Merkel had stated clearly that the German government would urge General Motors to present a new plan as quickly as possible and to repay bridge financing by the end of November. Meanwhile, Hesse state Premier Roland Koch, who also advocated heavily for Magna’s bid, told rallying workers at Opel headquarters last Thursday that he would fight for the firm. He warned GM not to “maximize profits by taking German workers hostage.” He emphasized, “We want Opel to continue to exist.”
