Despite pleas by German Chancellor Angela Merkel on November 3, 2009, General Motors announced that same day it will not sell off Opel. General Motors has been working on a deal with Magna International Inc, a deal which was strongly backed by the German government. http://www.reuters.com/article/marketsNews/idUSWEN599920091103
- General Motors announced it would keep Opel because of its "improving business environment" and strategic importance to GM. Opel is a key supplier of car designs to GM. http://online.wsj.com/article/SB125728725957326159.html?mod=WSJ_hpp_MIDDLTopStories
- Germany supported the deal with $6.7 billion (E4.5 billion), after a previous financial injection of €1.5 billion, which Germany is now expected to demand refunded.http://online.wsj.com/article/SB125728725957326159.html?mod=WSJ_hpp_MIDDLTopStories
- With the sudden move by GM, German employees fear the continuation of production plants in Germany (Bochum and Kaiserslautern), and Antwerp, Belgium.
- The sudden change of heart by GM was condemned by German Economics Minister Rainer Bruederle on Wednesday November 4, 2009, who called the move "totally unacceptable".http://online.wsj.com/article/BT-CO-20091104-704977.html
History
- On May 30, 2009 General Motors announced it would reform its European branch into a New GM Europe, which would comprise of Opel and Vauxhall.http://apps.detnews.com/apps/blogs/autosblog/index.php?blogid=788&source=nletter-business
- The GM Europe deal, supported by the German government, meant GM would keep a stake of 35%, Opel staff would get a 10% stake,[6] and the remaining 55% sold to a new partner, either FIAT or a consortium including Magna International.http://www.tagesschau.de/wirtschaft/opelmagnatreuhand100.htmlhttp://news.bbc.co.uk/2/hi/business/8074924.stmhttp://news.bbc.co.uk/2/hi/business/8075157.stm
- Two days later, on June 1, 2009, GM filed for bankruptcy. New GM Europe was not directly affected by this.http://dealbook.blogs.nytimes.com/2009/05/29/after-93-years-gm-shares-go-out-on-a-low-note/http://www.nytimes.com/2009/06/01/business/01auto.html?_r=1
- The deal with the Magna Group was agreed on September 10, 2009http://news.bbc.co.uk/2/hi/business/8247971.stm
- On November 3, 2009, the GM board decided to back out of the deal.http://abcnews.go.com/Business/wireStory?id=8861499
Should GM abandon the sell of Opel? Will GM sell Opel to Vauxhall?(1 Answer)
A:
I think it is a foolish and short sighted move, they need to do a better job of intergrating Opel into the product lines and they need to ...
Will GM sell Opel to Fiat?(1 Answer)
A:
I believe that they should sell it because they are not in the usa anyways and plus it might help them or motivate them to fight bankrupcy.
How much cost cutting will GM need to survive?(2 Answers)
A:
According to most analysts, more than 10B per quarter. http://www.huffingtonpost.com/steve-parker/can-gm-survive_b_113740.html
