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-   -   GM calls off sale of Opel and Vauxhall (http://www.motorworld.net/forum/showthread.php?t=61721)

HeilSvenska 11-03-2009 07:54 PM

GM calls off sale of Opel and Vauxhall
 
http://www.google.com/hostednews/ap/...0LOOgD9BOBU481

Quote:

DETROIT — General Motors Co. said Tuesday it will keep its European Opel unit and restructure it instead of selling a 55 percent stake to Canadian auto parts maker Magna International and its partner, Russian lender Sberbank.

GM's board of directors made the decision at a daylong meeting after determining that a 3 billion euros ($4.43 billion) restructuring plan was significantly lower than bids submitted for the division. GM CEO Fritz Henderson added that Europe's business environment and GM's overall health have both improved since it put the division up for sale.

The decision ends a year of uncertainty for the troubled Opel brand and its English sister, Vauxhall. Henderson said in a statement that GM will present its restructuring plan to the German government soon.

zeus_2011 11-04-2009 04:56 AM

The German governmnet can't be too happy seeing as they've already pledged a few billions to Magna in loans, whereas the Union people in the UK seem to have accepted the news with open arms.

I for one am glad....cant see Vauxhall being able to survive on its own without Opel backing.

HeilSvenska 11-04-2009 06:21 AM

Quote:

Originally Posted by zeus_2011 (Post 871519)
The German governmnet can't be too happy seeing as they've already pledged a few billions to Magna in loans, whereas the Union people in the UK seem to have accepted the news with open arms.

I for one am glad....cant see Vauxhall being able to survive on its own without Opel backing.

The word is that since the deal's off, the money promised will go back to the German government. It wouldn't make sense otherwise.

zeus_2011 11-04-2009 05:02 PM

Terminating any agreements will still cost the german government money! Im sure there will be some sort of legal action on their part!

Nonetheless, if GM can recover in this way, surely its good news and a sign of some sort of recovery in general.

zeus_2011 11-05-2009 11:37 AM

http://news.bbc.co.uk/2/hi/business/8343934.stm

Oh dear! Unions have now got involved.


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