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GM cancel sale of GM Europe

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  • GM cancel sale of GM Europe

    Just announced on the news that General Motors have cancelled the sale of Vauxhall and Opel to Magna, on the basis that there has been an upturn in business??? New Astra and Insignia gonna sell well then!

    Such a shame GM Europe is going to have to carry the fat cat on their shoulders again . . .

  • #2
    I don't think any of us saw that coming! Let's hope that they get the European situation sorted soon.

    "General Motors (GM) has cancelled plans to sell a majority stake in its European car business Opel, including its UK brand Vauxhall.
    The US giant said in a statement that its board had made the decision because of "an improving business environment for GM over the past few months".
    GM had agreed to sell Opel and Vauxhall to Canadian car parts firm Magna.
    It added that it would now be seeking aid for Opel from the German government and other European states.
    GM added that it had also come to its decision because of the importance of Opel and Vauxhall to its global strategy.
    It said it would now "initiate a restructuring of its European operations in earnest".
    However, its decision is likely to cause much anger in Europe, where the planned sale of Opel has been dragging on for months, and the German government had pledged Magna 4.5bn euros ($6.7bn; £4bn) of loans.
    Government spokesman Ulrich Wilhelm said Berlin regretted the decision, adding that it wanted GM to repay 1.5bn euros in bridge financing extended by German banks.
    Magna said in a brief statement that it would continue to support Opel and GM in the future."

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    • #3
      Yup just seen that on the news,
      Let's hope it's good news for all concerned

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      • #4
        That should be good news to the people who buy and love Vauxhall/Opel in europe.

        The EU gave GM the get out clause because of the way the German government pushed them towards Magna.

        It might not be such good news for the workers as GM Europe still has to many factorys for the volume of sales.

        I just hope that the UK workers don't take the brunt of it, as we all know, it's easier and cheaper to shut UK factories compared to ones in Europe.
        We just need to hope that GM take the long term view and make the decision on what the best plants are for the future based on how good they are and not on how cheap it is to shut them.

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        • #5
          The Rummour that GM might not sell Opel Vauxhall has been doing the rounds in our place for a few months, i had an idea that GM would keep hold of its Europen arm in the end.
          As soon as the offical statement comes out in work this week i'll post it up here.
          TBH 90% of the Ellesmere port workers didnt want Magna to buy us anyway.
          sigpic Cheshire & North Wales Region. Home of A&M Conversions

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          • #6
            Will the GM restructuring mean job losses in Europe though? I would imagine that Magna were taking it over as a going concern and this would have meant they had to keep jobs, but GM are still globalising their business strategy to cut costs?

            I spoke to a friend of mine who is still working at Toyota and they are getting rumours that next year they will still see a further downturn in their production volumes in the UK, so the car industry is by no means out of the woods yet

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            • #7
              The main reason our German friends are unhappy (pmsl) is that the original plans were to shut Opel Bochum when they finish the Astra h 5 door plus Antwerp in Belgium have no new model when they finish the Astra Sporthatch mid 2010.

              Ellesmere Port is still the lead plant for the new Astra J 5 door hatch & will also be the only plant building the new Estate in 2010 (which we are already building pre production pannels for it now).

              End of the day im happy Magna havent got Vauxhall & its still GM as the old saying goes... Better the Devil you know.
              sigpic Cheshire & North Wales Region. Home of A&M Conversions

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              • #8
                Great news as Sean has said better the devil you know. Big respect to all the employees who make the best cars in the world, well done chaps

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