GM calls off sale of Opel and Vauxhall

[HeilSvenska]

http://www.google.com/hostednews/ap/article/ALeqM5hHEvhjqGkRnVvsCpvhR79cX0LOOgD9BOBU481

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]

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]

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]

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]

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

Oh dear! Unions have now got involved.