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...secure the long-term future of Opel. At the carmaker's headquarters in the town of Rüsselsheim near Frankfurt, workers were hugging friends and colleagues outside the factory on Saturday when news of the deal broke. Many were surprised the German government finally stepped in to save the traditional carmaker Opel in the nick of time, just before its parent company, the U.S. car giant, GM, went under...

Author: /time Magazine | Title: Merkel Saves Opel From GM's Fate | 6/1/2009 | See Source »

...Economy Minister Karl-Theodor zu Guttenberg, a conservative politician from Angela Merkel's sister CSU party, criticized the deal to save Opel and apparently threatened to resign on Friday night when he was over-ruled. Guttenberg, a rising star in Merkel's coalition government, controversially suggested Opel should go into an "orderly insolvency" and he accused the government of risking billions for a short-term solution. "There is the danger the state could be blackmailed if it is too generous with state help even on one occasion," Guttenberg told the Welt am Sonntag newspaper on Sunday...

Author: /time Magazine | Title: Merkel Saves Opel From GM's Fate | 6/1/2009 | See Source »

...know what is," says Toronto analyst Dennis DesRosiers with DesRosiers Automotive Consultants, referring to the ransomlike price GM demanded for its promise to maintain a share of its car and truck production north of Detroit. "This deal does more to get Obama reelected than it does to save jobs in Canada...

Author: /time Magazine | Title: Saving GM Canada at Any Price? | 6/1/2009 | See Source »

...over the next couple of years. About 1,100 of the new total is expected to be salaried jobs, which are unrelated to assembly operations. That means Ottawa and the Ontario government are together spending an unprecedented $2.1 million for each assembly job at GM Canada they hope to save...

Author: /time Magazine | Title: Saving GM Canada at Any Price? | 6/1/2009 | See Source »

Despite the hefty price tag, both Ottawa and Ontario felt their hands were tied, and there was little haggling. "We had to save it all or have zero forever," PM Harper said at a joint news conference in Toronto, referring to the rescue of GM Canada...

Author: /time Magazine | Title: Saving GM Canada at Any Price? | 6/1/2009 | See Source »

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