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

Recommended

What has BMW been up to lately? The company recently announced that they are currently focusing on electrification, and so far, their new architecture will enable “electrification of every model...
by - July 26, 2017
A couple of days ago, Ford came out with their pursuit-rated F-150 Police Responder, and we were quite impressed with what it has to offer. And we are pretty sure...
by - July 26, 2017
Aside from fronting Honda’s annual summer tour, pop rock band OneRepublic was also given an opportunity to customize a 2017 Honda Civic Type R. The car is a one-off and...
by - July 26, 2017
Everyone seems to know that the Alfa Romeo Giulia has been recently experiencing problems. Turns out, the blame goes to Giulia’s software. Reid Bigland, big time executive from Alfa Romeo...
by - July 26, 2017
Romanian automotive media publication cars.ro earlier said that the new Ford Fiesta will no longer be offered in the United States. Robert Stiller, Ford’s vehicle program manager for the B-segment,...
by - July 26, 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