Rumors Rife GM May Keep Opel

Rumors continue to flow that General Motors is actually trying to hang on to Opel, its European unit, after making sale plans with buyers over the last couple of months.
The chief negotiator for General Motors in the sale of Opel met a task force created by the German government yesterday. They discussed the U.S. carmaker's plans for the European unit.

Germany's deputy Chancellor Frank Walter Steinmeier says he hoped some points were cleared up in the talks.

German politicians and labor were puzzled on Monday by news that GM may now want to hang on to Opel rather than sell it to an investor, as planned.

Sources with knowledge of the deliberations told Reuters on Monday that GM was considering a plan to raise $4 billion to keep Opel rather than selling it to one of two bidders, Canada's Magna or RHJ.

GM decided earlier this year to get rid of Opel, its unit for most of the past 80 years, saying it needed billions of euros in state aid to avert job cuts and site closures.

In Germany, Opel employs over 25,000 people in four major plants making everything from three-door Corsa subcompacts to Zafira vans. In the UK there are two factories producing automobiles under the Vauxhall badge. Opel has other facilities in Belgium, Poland and Spain.

Category:

News & Politics

Tags:

• NTD
• News
• General Motors
• Opel
• Europe
• Frank Walter Steinmeier
• Corsa
• Zafira
• Vauxhall