Detroit Bureau on Twitter

Posts Tagged ‘GM Opel Sale’

GM Board Balks and Decides to Retain Opel!

Control of product development and patents overrules speculators and GM's need for cash.

by on Nov.03, 2009

The Board of Directors at reorganized General Motors Company has decided to keep Opel and Vauxhall and will initiate a restructuring of its European operations “in earnest,” it said late today in a statement.

“GM will soon present its restructuring plan to Germany and other governments and hopes for its favorable consideration,” said Fritz Henderson, president and CEO. “We understand the complexity and length of this issue has been draining for all involved. However, from the outset, our goal has been to secure the best long-term solution for our customers, employee, suppliers, and dealers, which is reflected in the decision reached today. This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall’s long-term future.”

(more…)

GM Opel Sale to Magna-Sberbank Delayed, Again

Company now says that it will go the November Board Meeting.

by on Oct.23, 2009

Critics contend that Germany, as the largest potential contributor of funding -- €4.5 billion ($6.8 billion) -- unfairly manipulated plant closings to keep more jobs there.

Critics contend that Germany unfairly manipulated plant closings to keep more jobs.

Our favorite blogger covering the ongoing Opel saga, John Smith of GM, said this morning that the Magna/Sberbank deal was delayed until at least the regular GM Board of Directors Meeting on November 3.

The sticking point now appears to be the financing that allegedly tilted the decision to Magna – how much, and by what governments?

Smith, who is the lead negotiator on the sale, implied that the deal would be ready to go by November after months of delay. The GM Board last reviewed the matter in September and instructed Smith to proceed with the Magna-Sberbank deal.

However, even if the GM Board approves the sale next month, it is still not clear that all the legal approvals from the European Union will be in place.

Since approval was given for the sale to the Canadian-Russian consortium, the European Union has been reviewing the Opel investor process and the circumstances surrounding the selection of Magna-Sberbank. A key document appears to be a letter from German Economics Minister Karl-Theodor zu Guttenberg that sets forth terms.

Do It Now!

Do It Now!

Critics of the deal contend that Germany, as the largest potential contributor of funding — €4.5 billion ($6.8 billion) — unfairly manipulated plant closings to keep more jobs there. Opel/Vauxhall also has efficient plants in Spain and the United Kingdom.

(more…)