General Motors Co. announced Tuesday that it will more than triple its funding for the restructuring of European units Opel and Vauxhall to euro1.9 billion ($2.6 billion), according to Associated Press.
General Motors had initially pledged euro600 million with hopes of receiving euro2.7 billion in European government funding for the units, but this has become more unlikely in recent weeks.
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GM will now be asking European countries for less than euro2 billion in the form of loan guarantees.
General Motors abandoned a plan to sell the majority of Opel and Vauxhall to investors late last year, instead choosing to keep the European brands.
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.
Among other projects, Opel will use the funding to invest in the Opel Ampera, the extended-range electric-driven family car and sister of the Chevy Volt, which Opel plans to launch at the end of 2011.
GM has said it would repay the entire $8.1 billion loan portion of its debt to the U.S. and Canadian governments by June.
After that, GM would still owe the U.S. government $45.3 billion. It intends to repay much of it when GM stock is sold to the public, perhaps late this year.
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