Currently reading: GM needs £3.7bn to keep Opel
GM board weighs up plan to hold on to Vauxhall and Opel

General Motors would need to find $6.1 billion (£3.7bn) if it wants to keep hold of Vauxhall and Opel rather than sell them off.

The figure was presented to GM's board, which is meeting today to try and decide what to do with its European operations, by its financial advisors, KPMG, according to the Reuters news agency.

Around two-thirds of the money would be needed to keep Vauxhall and Opel running, while the other third would be payable to the German government, which has given a bridging loan to keep the company running during the current financial crisis.

GM must decide between trying to hold on to its European operations, or selling to either Magna, which is the German government's preferred bidder, or RHJ International, which is GM's preferred bidder.

Although a decision is possible this week, some reports have indicated GM may wait until next month before deciding what to do.

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opelvaux 9 September 2009

Re: GM needs £3.7bn to keep Opel

Well if they keep Vauxhall/Opel lets hope the new management realise that it makes the best cars in the GM company!! Main problem that GM has got is that it's never had the guts to make the brand(s) global.

Ideal world would have been Opel/Vauxhall/Holden/Chevy as the world brands all selling the same badge engineered cars but actually one brand. Saab and Caddillac would have been the ideal halo brands to sit above the mass market models. But hey GM never had a clue for years. I remember reading an article in pardon the swear word CAR Magazine when I was 15 (now 33!!) where the guy writing the article said if GM didn't shake up its US operations and make its European ones global that GM would be in financial tatters in the 2000' right he was.

GM would be crazy to offload Vauxhall/Opel, and they would also learn a great lesson to never starve GM Europe of funding again. KEEP them under the GME banner because Cheverolet in Europe cannot compete with VW, Ford, Honda etc. Chevy are at the Hyundai and Kia level in Europe (no offense to these brands as they are good brands now). Hopefully the GM boardroom will do the right thing, for a change!

PS Good luck to SAAB too! A missed oportunity for GMC