General Motors Co. said Tuesday it would more than triple its funding for the turnaround of European units Opel and Vauxhall to €1.9 billion ($2.6 billion). General Motors had initially pledged €600 million and hoped to get some €2.7 billion in European government funding for the restructuring of its important European units, but that had been looking increasingly unlikely in recent weeks. GM will now be asking European nations for less than €2 billion in the form of loan guarantees. General Motors abruptly abandoned a plan to sell the majority of Opel and Vauxhall to investors late last year, instead choosing to keep the European brands for itself. GM said its higher contribution in the form of equity and loans removes the risk of potential liquidity shortfalls during Opel's and Vauxhall's restructuring this year. “GM's €1.9 billion commitment is the right course of action for Opel and Vauxhall and should clearly signal our determination to fix our business,” Nick Reilly, the chief executive of Opel and Vauxhall, said in the statement.
