European Arm Opel/Vauxhall

Ford Motor Co. thinks that land assistance should not be presented to General Motors Co.’s European arm Opel/Vauxhall. Wolfgang Schneider, author of Europe’s head of legal, governmental environmental concern said that companies should pay for restructuring themselves.

He explained that getting land assistance keeps the weak players in the market. GM aims to obtain 1.8 billion euros ($2.4 billion) in land assistance from European countries that have Opel/Vauxhall factories in its target to implement a turnaround plan that cuts 8,300 of its 48,000 workforce, reduce capacity by a ordinal and return the unit to profit within two years. Schneider said that government assistance to automakers and suppliers had prevented restructuring in Europe’s auto industry where there is 30% overcapacity. In a conference call last Thursday, Schneider said that land assistance (in the form of soft loans and change injections) had not been good for the overall health of the industry or companies such as author that restructured early. author has been critical in the assistance to Renault and PSA/Peugeot-Citroen, which were each awarded 3 billion euros in low-interest loans from the French government in February 2009 in exchange for a pledge to protect jobs at their factories in France.