NEW YORK (CNNMoney.com) -- General Motors has withdrawn requests for loan guarantees from various European governments to help restructure its Opel division there. Instead, GM said, it will invest the necessary funds itself.
GM Europe had requested a total of €1.8 billion, or $2.2 billion, from countries where it has operations including Germany, where Opel is headquartered, Spain and the United Kingdom.
Last week, the German government denied GM's request for €1.1 billion, or $1.4 billion, to help finance the restructuring.
The UK and Spain had each already committed to back some bank loans, GM said, but those requests have now been withdrawn.
GM had originally agreed to contribute €1.9 billion ($2.3 billion) to Opel's restructuring, but will now commit a total of €3.3 billion, or about $4 billion.
GM had submitted its requests for the government loan guarantees six months ago, said Nick Reilly, president of GM Europe, on a conference call. The process took much longer than Opel executives had anticipated, he said.
"In that period of time, the GM financial position has improved somewhat and the outlook is positive," he said.
In May, GM announced a quarterly profit of $865 million. GM had previously said it did not have any more money to invest in Opel's restructuring.
The funds for GM's investment will come from "a mix of our own cash and borrowings," Reilly said.
While some may object to GM stepping in where the German government wouldn't, considering that the carmaker was only recently bailed out by the U.S. government, it's in GM's best interests to fund the restructuring, said Reilly.
"The U.S. government is a 61% holder of GM," Reilly said. "One very important part of GM is its European operations."
GM had also said that it would invest €11 billion ($13.5 billion) in new product development for Opel over the next five years, and said in its announcement that it willl maintain that commitment.
Shares of Amazon have been on fire lately. Investors are bullish after the company's latest earnings. Even Warren Buffett is a big fan of Amazon CEO Jeff Bezos -- even though Berkshire Hathaway does not own Amazon stock. More
It's getting worse for Puerto Rico. The island defaulted on $422 million in bonds related to its Government Development Bank on Monday. Congress is currently debating an aid package for the island. More
Tech leaders Apple, Alphabet and Microsoft all disappointed Wall Street with their latest earnings reports. And that's dragged the Nasdaq back near correction territory. Is this the beginning of another huge pullback or an overreaction? More
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More