(RTTNews) - Automaker General Motors Co. (MTLQQ.PK: News ), which emerged from bankruptcy in July, is reportedly under a process of downsizing German government's stake in Opel GmbH, through a new financing the plan. The automaker would fund a minimum of $1.48 billion or €1 billion from the cash in hand, and another $3 billion from a group of European governments and labor unions, according to the report.

The report said that the new financing plan was began after GM's board decided to retain its German unit Adam Opel GmbH and British sister brand Vauxhall, citing the improving business environment as well as the brands importance to GM's global strategy.

The report expressed doubt whether GM would use U.S. Treasury money to fund its new plan of cutting German government's stake in Opel. However, GM's Chairman Edward Whitacre reportedly said to media that the company has handful of sources of fund that includes aid from Treasury.

Last week, GM's President and Chief Executive Officer Fritz Henderson said in a statement, "GM will soon present its restructuring plan to Germany and other governments and hopes for its favorable consideration. We understand the complexity and length of this issue has been draining for all involved. However, from the outset, our goal has been to secure the best long term solution for our customers, employee, suppliers, and dealers, which is reflected in the decision reached today. This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall's long-term future."

The new General Motors's plan for a restructuring of its European operations could see total restructuring expenses of about 3 billion euros.
In early September, GM agreed to sell its majority stake in Opel and Vauxhall to a consortium led by Canadian car-parts maker Magna International, Inc. (MGA, MG-A.TO). Magna teamed up with Russian auto maker OAO GAZ Group and state-controlled Russian financial group OAO Sberbank for the deal. The deal was originally expected to be signed in early October and close by the end of November. The German government has helped Magna to win the bid by offering 4.5 billion euros or US$6.4 billion in state aid.

After the sudden pull out from the Opel/Vauxhall deal, Group Vice President and President of Opel Europe Carl-Peter Forster resigned his role as head of European operations. Forster supported the unit sale to Magna, and he was reportedly upset over GM's decision to retain its troubled European operations.

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