Germany has rejected an aid request from General Motors (GM) for the European division carmaker Opel. Opel is the owner of Vauxhall unit. UK has requested for loan of more than 1 billion Euros from Germany for its reformation.

General Motors is holding the guarantee to help the firm to increase its money to restructure Opel.

Some of the German politicians were not happy about GM asking for help as it is getting loans from the US government for its improvement.

A German committee is responsible for this aid request made by the companies during the recession period. They were likely to consider the Opel issue on Wednesday’s discussion but have failed to reach any conclusion.

After the failed discussion the matter has been backed in to the hands of the Economy Minister Mr. Bruederle and he has said that he is confident that Opel has a good future and it can stand even without credit guarantees. On the other hand the chief executive of Opel Mr. Nick Reily has said why this aid was rejected is not yet understood.