F&I Management & Training

General Motors says it will spend 1.9bn euros ($2.6bn; £1.7bn) to restructure its European unit Opel - three times more than it had first pledged.

GM estimates that Opel - which includes the UK's Vauxhall business - needs 3.3bn euros to be turned around.

The carmaker is now asking that European governments put up loans and guarantees worth 2bn euros, down from 2.7bn euros.

GM hopes to have Opel back to profitability by 2012.

'Strong commitment'

"We have shared this decision with the European Commission as well as the national and state governments involved," said Opel chief Nick Reilly.

"We hope that our strong commitment will be well received as a major milestone in our ongoing discussions about government guarantees to cover the remaining gap."

The carmaker had asked for about 60% of the total aid to come from the German government, on the basis that 60% of the company's employee costs of almost 50,000 are incurred in Germany.

Reports have said that Germany wanted more funding to come from GM before it committed to providing aid.

"Beyond the purely financial aspects, we see this as a major step towards instilling renewed trust and confidence into Opel/Vauxhall's customers, employees, business partners, unions, dealers and European governments," said GM chairman Ed Whitacre.