GM could deploy U.S. funding overseas

DETROIT, Nov. 6 (UPI) -- General Motors Co. Chief Executive Officer Fritz Henderson said the U.S. automaker could use federal money to support its struggling European operations.

The U.S. government gave GM $50 million to help it emerge from bankruptcy this summer and support the company through the recession.

Henderson said Thursday GM was seeking $4.5 billion in help from European governments, including Germany, the Detroit Free Press reported Friday.

GM had lined up a buyer for its German and British operations over the summer, but reversed its decision to sell in a surprise move this week.

Although the buyer, Magna International Inc., had plans to cut jobs, GM's indication that it would trim its European workforce by 10,000 angered German union members and politicians.

Opel would also bear part of the restructuring costs. "Things have improved there, as far as liquidity position … that would be our principal source of doing it (restructuring)," he said.

TARP funds GM received before it went into bankruptcy could not be used to fund operations outside the United States. But funds GM picked up during its bankruptcy case were available for use overseas, the newspaper said.

"We are able to run a global business," Henderson said.