GM to sell majority of Opel, Vauxhall
Posted on: Thursday, 10 September 2009, 10:30 CDT
General Motors Co. said Thursday it would sell a majority of its European operations to a Canadian and Russian venture of Magna International and Sberbank.
GM's board of directors approved a sale of 55 percent of Opel and Vauxhall, GM brands made in Germany and Britain, respectively, GM said in a statement.
GM said several key issues will be finalized during the next few weeks,
including labor unions support for the necessary restructuring for viability
and finalization of a definitive financing package from the German government.
The deal was announced in Germany by Chancellor Angela Merkel, The Times of London reported Thursday.
Union leader Tony Woodley, general secretary of Unite, said, with Magna as the new owner, we need to make sure that British plants and people are not treated disproportionately during the re-structuring that will take place.
A month ago, GM balked at selling Opel and Vauxhall, which have weathered the recession better than other brands, The Times said.
In a statement, GM President and Chief Executive Officer Fritz Henderson said, GM will continue to closely collaborate with Opel and Vauxhall to develop and produce more great cars, such as the new Insignia and the new Astra.
Source: United Press International
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