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Upto Date Information in regards to GM keeping Vauxhall-Opel

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  • Upto Date Information in regards to GM keeping Vauxhall-Opel

    This is the latest info from Ellesmere Port in Regards to GM not selling Vauxhall-Opel to Magna....
    At present this is the most upto date information regarding the Magna situation, even more than what general media are saying.

    GM Board Decides to Retain Opel

    · New GM supports restructuring of Opel
    · GM restructuring plan involves lower investment compared to investor proposals
    · Discussions with stakeholders on restructuring to begin in earnest
    DETROIT – Given an improving business environment for GM over the past few months, and the importance of Opel//Vauxhall to GM’s global strategy, the GM Board of Directors has decided to retain Opel and will initiate a restructuring of its European operations in earnest.

    "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, employees, 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."

    On a preliminary basis, the GM plan entails total restructuring expenses of about
    3 billion, significantly lower than all bids submitted as part of the investor solicitation. GM will work with all European labor unions to develop a plan for meaningful contributions to Opel's restructuring. While Opel continues to outperform against its viability plan assumptions and immediate liquidity is stable, time is of the essence.

    "While strained, the business environment in Europe has improved." Henderson said. "At the same time, GM’s overall financial health and stability have improved significantly over the past few months, giving us confidence that the European business can be successfully restructured. We are grateful for the hard work of the German and other EU governments in navigating this difficult economic period. We’re also appreciative of the effort put forward by Magna and its partners in Russia in trying to reach an equitable agreement."

    Henderson added that GM also hopes to build on its already significant business in Russia and to resume work directly with GAZ to contribute to both the modernisation of its operations and the joint development of the Russian vehicle market on a mutually attractive basis. More details on the next steps in the restructuring will be provided as the plans and developments warrant.

    Given an improving business environment for GM over the past few months, and the importance of Opel//Vauxhall to GM’s global strategy, the GM Board of Directors has decided to retain Opel/Vauxhall.
    This is viewed as positive news for Vauxhall as we will stay within the GM family and it is proof that GM has confidence in the capabilities of Opel/Vauxhall employees. The decision ends a long period of uncertainty which we understand has been unsettling for all involved.
    GM will still expect cost saving initiatives, which were identified during the year, to be delivered speedily to assist the financial situation. There is no question that there is still a lot to be done for our company and future communications will further outline what needs to be done moving forward.
    Ellesmere Port employees have an important part to play as we are the lead plant for the New Astra, such an important product for GM, which will be seen in UK dealerships from December.
    Therefore we must all now focus our efforts on ensuring that we build each and every car to the highest quality level possible, at the lowest cost and it is imperative that we deliver the volumes we have committed to.
    Thank you for your continued support.
    Thomas C Schmidt
    Plant Director November 4th 2009

    You will all have heard the news by now that yesterday the GM Board decided to retain the Vauxhall/Opel business rather than sell it to Magna. This decision shows the importance of Vauxhall/Opel for GM's global strategy and success, and is proof of GM's confidence in the capabilities of all Vauxhall/Opel employees particulary in the UK.
    We all know the benefits of global cooperation with GM, through in particular our very successful product programmes, and this is now set to continue.
    There is still of course a need for the European operations to be restructured under GM to ensure our long term viability and much of the work that was in progress in preparation for the Magna deal will continue.
    At this point in time, the impact of this decision on the future of Saab. Chevrolet and CCH is minimal and business continues as normal.
    Please continue to focus on outperforming our business plans while the details are established of how the European business under GM will operate in the futureand as soon as I am able I will share the detail of any implications for GM UK&I .
    Bill Parfitt

    Last edited by sean_dhc1; 4 November 2009, 04:07 PM.
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