General Motors is set to announce its plans for Vauxhall and Opel later today - with the latest reports suggesting it will go ahead with plans to sell to Magna International.
GM was forced to investigate selling off its European business as part of its US Chapter 11 restructuring.
Initial reports suggested GM had decided not to sell its European arm after a two-day board meeting in Detroit, but it is now being widely stated that GM will sell to Magna, but will attach stringent terms to the deal regarding intellectual copyright issues.
Two bids for the company had been lined up; one by Canada’s Magna, which was backed by Russia’s Sberbank, and another by RHJ International, a Brussels-based investment firm.
GM's decision will be announced in Berlin this afternoon, bringing months of speculation about the future of Opel/Vauxhall to an end.
Tom Richards
Twitter - follow autocar.co.ukSee all the latest Vauxhall reviews, news and video
Join the debate
Add your comment
Re: GM 'to keep Vauxhall and Opel'
Well Autocar you did well on this one.......NOT.
Re: GM 'to keep Vauxhall and Opel'
September 10, 2009 GM Board Recommendation to Sell Majority Stake in Opel/Vauxhall to Magna International/Sberbank · GM to sell 55% stake in New Opel to Magna/Sberbank Zurich. General Motors today announced that its Board of Directors supports a bid from the consortium of Magna International Inc. and Sberbank to buy a majority stake in its European Opel/Vauxhall operations. Several key issues will be finalized over the next few weeks to secure the binding agreements, including the written support of the labor unions to support the deal with the necessary cost restructuring for viability and the finalization of a definitive financing package from the German government. The definitive agreements should be ready to sign within a few weeks, with closing to follow within the next few months. Under the deal, Magna/Sberbank will purchase a 55 percent stake in New Opel; GM will hold a 35 percent stake and employees will be provided a 10 percent stake. “The hard work over the past two weeks to clarify open issues and resolve details in the German financial package brought GM and its Board of Directors to recommended Magna/Sberbank,” said Fritz Henderson, GM President and CEO. “We thank all parties involved in the intensive process of the last few months -- especially the German government -- for their continued support that enables this new venture. I’d also like to thank the Opel and Vauxhall customers for their continued loyalty. GM will continue to closely collaborate with Opel and Vauxhall to develop and produce more great cars, such as the new Insignia and the new Astra,” Henderson added.
The agreement will keep Opel/Vauxhall a fully integrated part of GM’s global product development organization, allowing all parties to benefit from the exchange of technology and engineering resources. The new ownership structure constitutes a new lean, efficient and independent organization for the Opel and Vauxhall brands. The current portfolio of Opel/Vauxhall cars and the models in the pipeline are a strong basis for future success.Re: GM 'to keep Vauxhall and Opel'
Autocar on the ball again?
http://www.marketwatch.com/story/gm-is-set-to-sell-opel-unit-to-magna-reports-2009-09-10