General Motors decides to keep Opel

Article by Christian A., on August 26, 2010

In a surprising turn of events, the General Motors' Board of Directors has decided to retain Opel instead of selling it off to Magna International. Fueling this decision is the improving business environment the past few months as well as the importance of Opel//Vauxhall to GM's global strategy. GM plans to initiate a restructuring of its European operations and will soon present its restructuring plan to Germany and other governments.

Fritz Henderson, president and CEO, said that he hopes that the plan receives favorable consideration.

He explained that although the company understands that the complexity and length of this issue have been draining for all involved, GM's goal from the outset has been to secure the best long-term solution for its customers, employee, suppliers, and dealers. 

Henderson said that this was determined to be the "most stable and least costly approach for securing Opel/Vauxhall's long-term future." 

On a preliminary basis, the GM plan entails total restructuring expenses of about 3 billion, which is significantly lower than all bids submitted as part of the investor solicitation.

GM said that it will work with all European labor unions to create a plan for contributions to Opel's restructuring. Analysts say that while Opel continues to outperform against its viability plan assumptions and immediate liquidity is stable, time is of the essence.

"While strained, the business environment in Europe has improved." Henderson said.  "At the same time, GM's overall financial health and stability have improved significantly over the past few months, giving us confidence that the European business can be successfully restructured.

We are grateful for the hard work of the German and other EU governments in navigating this difficult economic period. We're also appreciative of the effort put forward by Magna and its partners in Russia in trying to reach an equitable agreement."

Topics: gm, opel

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
In many industries, it is the rivalries that make things exciting. In basketball for example, there is the well-known rivalry between the Los Angeles Lakers against the Boston Celtics. For...
by - February 19, 2017
Now on sale in several major markets around the world including Europe, the BMW 5 Series (G30) heralds the arrival of the new seventh generation and represents a whole new...
by - February 19, 2017
Just recently, it was speculated that a new Porsche Cayman GT4 RS is coming. There is no official confirmation yet from the German sports car maker, but the arrival of...
by - February 18, 2017
Will there be a BMW M4 CS? Apparently, there is a Club Sport version of the BMWM4 after it was sighted in California doing a shoot for a new commercial...
by - February 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries