Truemors
is reporting from
Member
NP Rank:
NP Rank:
Magna purchase of Opel cancelled, GM shocks Germany
Share:
by Karl Gotthardt - albertacowpoke | November 4, 2009 at 04:03 am
140 views | 10 Recommendations | 3 comments
Photos
Videos
As part of General Motor's restructure plan, the troubled Auto Manufacturer had concluded a deal with Magna, a Canadian Company, to sell it's European assets, Opel and Vauxhall to Magna and Russia's Sherbank. GM was to retain 35% interest in the European division.
In a surprise move, the GM Board of Directors has now called off this deal. The Board cited an improved business environment and the importance of Opel/Vauxhall to GM's global strategy for this decision.
This is a major blow to Magna/Sherbank. Frank Stronach, owner of Magna, had plans of building an electric car in Canada. The announcement was apparently came as a total shock to Germany, which had approved the sale to Magna/Sherbank.
Given an improving business environment for General Motors 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. In September, GM agreed to sell a majority stake in its European Opel/Vauxhall division to a consortium of Canadian auto supplier Magna International and Russia's Sberbank. Under the deal, Magna/Sberbank would have purchased a 55% stake in New Opel; GM would have held a 35% stake and employees would have been provided a 10% stake.
What is NowPublic?
NowPublic lets people work together to cover news events around the world.
Most Recommended Comment
Crowd Power
SOLARLIFE
FRENCH RIVIERA MONACO LONDON, France
Most RecentMost Recommended Comments (3)
at 08:16 on November 4th, 2009
Source: augsburger-allgemeine.de
The first para should read that the Chief Union Boss, sees factories in Bochum, Antwerp and Kaiserslautern in acute danger of being closed. He finds Gm's plan unrealistic since it will result in massive dismissal . Auto industry experts are divided on the issue. Criticism is also directed at the German Federal Government, which, to some, acted too quickly to approve Magna as the buyer.
at 14:21 on November 4th, 2009
The latest word printed in The Times is that GM plans to lay off at least 10 000 workers in their Opel division. No wonder the German workers are angry.
at 14:57 on November 4th, 2009
I read that in a German Newspaper as well. Of course this is not a surprise. Look at who is on the Board of Directors of GM. The US Gov, Cdn Gov, American Autoworkers Union, the Canadian Automakers Union. Why would they care about 10,000 German jobs.
It just shows how easy deals can be broke nowadays.
Merkel is also asking for GM to repay any stimulus she gave them.
What I also find amazing, or copycat, how GM one day after Ford announced they made $1Billion in profit by introducing some of their European products to the North American Market, GM got that idea also. How inventive.
I'm still pissed that they canceled the Pontiac brand.