GM dropped plans to sell Opel and Vauxhall two years ago, report says

Article by Christian Andrei, on July 25, 2011

According to U.S. diplomatic cables that Wikileaks has obtained, General Motors Co. dropped a plan to sell its Vauxhall and Opel brands two years ago as the intended buyers were demanding the right to sell its plants to a Russian state-owned vehicle manufacturer, the Times reported on Monday.

The paper revealed that the Canadian-Russian consortium bidding for the European operations of GM made 31 amendments to the agreement after it was signed.

The consortium, which included Russian bank Sberbank and Canadian vehicle components maker Magna International Inc., inked a memorandum of understanding with the government of Germany to obtain a 55 percent Opel stake in May 2009.

The paper also said that while Berlin thought the terms have been agreed upon, the consortium kept adding "unacceptable" demands.

The paper also revealed that according to the U.S. Embassy in Berlin, political consideration had entered into what’s supposed to be a “straightforward” business transaction. Moreover, the U.S. Embassy stated that the Chancellery “did not seem to understand” what has been agreed in the MOU.

The Times further cited GM insiders saying that one of the great concerns during that period was that Russian vehicle manufacturers could obtain access to the technology and patents of Opel. Times’ sources revealed that these worries, combined with the restructuring of GM and the recovery in vehicle markets, led the company to cancel the sale in November 2009.

Sberbank, Magna and GM were not available for comment immediately. During the early part of this month, Opel Chairman Nick Reilly stated that GM was "very satisfied" with Opel’s progress, but stopped short of commenting on whether the company had put its European unit up for sale.

Topics: gm, opel, vauxhall

If you liked the article, share on:


Login or Create new account to add a comment!


Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016
Most of you may have heard or already have one of those autonomous home appliances doing the house chores. Thus, it’s not anymore unusual to see a car going places...
by - October 20, 2016