Print Edition
August 2010 
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GM Abandons Opel Sale |
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Muazzin Mehrban, November 2009 |
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(04 November 2009)
In a surprise turnaround, General Motors (GM) has pulled out of the planned sale of its European arm Opel to Canada’s Magna, according to a report in the Financial Times. The move has come as a shock to the German government, which had used a great deal of political capital trying to push through a deal.
After lengthy discussions on Tuesday, the US giant confirmed it would hold on to Opel and begin restructuring. The Financial Times says the decision is a reflection of the improving business confidence in the car industry, which was highlighted yesterday by another monthly increase in US car sales.
Fritz Henderson, GM’s chief executive said, “GM will soon present its restructuring plan to Germany and other governments and hopes for its favourable consideration. GM’s overall financial health and stability have improved significantly over the past few months, giving us the confidence that the European business can be successfully restructured,” he added.
Mr Henderson went on to say that he foresaw Opel’s restructuring expenses to be in the region of €3bn, less than the €4.5bn Magna had asked for in state loans and guarantees from European states.
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