Now that banks are seemingly more open to issuing loans, General Motors is looking to score a line of credit to restructure its European operations.

As of Q1 2010, The General’s struggling European arm has been operating at a loss. And until last month, GM was looking for loan guarantees from European Union member countries. Upon Germany’s decision not to extend credit to GM, our favorite automaker decided to go the lone route and search for the money itself. GM is now seeking a credit line of $5 billion, less than the $18 billion credit line used by Ford that to avoid Federal financing and intervention.

If The General can secure such a line of credit, it would make it much easier to restructure our favorite automaker’s vital European division, which includes Opel, Vauxhall, Chevrolet and Cadillac. Brands aside, the division has engineered the very important and highly successful Epsilon (current gen. Malibu), Epsilon II (Buick LaCrosse/Regal, next-gen. Malibu), and Delta (Astra, Excelle, Cruze) platforms. We would like to know, however, why GM doesn’t want to use a portion of its remaining $35 billion of TARP funds to restructure its European enterprise.

[Source: Freep]