GM decides it will keep Opel, turns back on Magna deal –

In a move more likely to Fritz Henderson waking up one night and saying “eh, I love those Germans at Opel, that’s it, the deal’s off”, the GM board, with Henderson in the first line, has announced that it will keep German carmaker Opel and said that the deal with Canadian parts supplier Magna and its Russian partner Sberbank is off.

The large company said that Opel, or Vauxhall as it is known in a few territories, is quite important (many of its other brands like Buick are essentially rebadged versions of the European models), and that it will collaborate with the European Union and German government so that it can restructure and make it profitable once again.

“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.”

Hopefully this move will prove to be a good one for both GM but especially for Opel in the long run. What do you think? Was it better for the German carmaker to be bought by Magna-Sberbank? Leave a comment with your thoughts.

Source: Jalopnik

Post tags: Tags: General Motors, gm, magna, Opel, sberbank