Thursday, December 23, 2010
In a strange turn of events (though some might rightfully disagree….), GM today announced that the company’s Board of Directors decided to terminate the sale process of Opel to a Russian-backed group led by Magna and keep the European unit under its control. The U.S. automaker said that it took this decision because of an “improving business environment for GM over the past few months” as well as the importance of the Opel/Vauxhall brands to the firm’s global strategy.
GM’s president and CEO Fritz Henderson said in a prepared statement that the company will present its restructuring plan for its European division to Germany and other governments and hopes for its favorable consideration. The U.S. automaker anticipates that the restructuring of Opel will cost around €3 billion, or about $4.4 billion at today’s exchange rates.