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General Motors is planning to raise funds to keep Opel/Vauxhall, rather than sell it to either Magna or RHJ International.

Sources close to the deal told Reuters that GM was now considering raising $4 billion (£3.5bn) after a board meeting on Friday declined to endorse either of the two bids it had received for Opel/Vauxhall.

GM has spent several months in talks with various parties regarding the sale of Opel/Vauxhall, with Magna and RHJ emerging as the two leading candidates.

Both have now submitted bids, but GM has reportedly rejected them both, bringing negotiations to a standstill.

A German labour representative said he expected official confirmation from GM very shortly about its plans, but he feared the latest revelations were damaging for the company.

Armin Schild, IG Metall's leader in the state of Hesse where Opel has its headquarters, said, “I see that as a bad sign for the future of Opel.”

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