GM and Opel Unit: Plans made by General Motors

By: Peter Chubb | Posted: November 4, 2009 | No Comments
Filed under: Autos

General Motors have been making a number of plans over its Opel unit in recent months; the most recent was GM deciding to keep the European outfit and not sell it to Canada’s Magna, which is backed by a Russian group. This has come as a huge shock after months of negotiations.

We had learned yesterday that Opel’s labor force agreed to offer 265 million Euros of their annual savings if GM was to go ahead with the Magna deal, but this was not enough to change General Motors mind. This did come as a shock as Opel’s Spanish plant had already accepted plans laid out by Magna.

According to Forbes, Rainer Bruederle, the German Economy Minister said that he hopes GM to present to them their new restructuring plans from Opel and Vauxhall following the pull out of the deal. Bruederle said that he wants this plans as soon as possible.

Bruederle has also criticized General Motors’s decision to pull out of the deal and not sell a 55 percent share of the company. Germany had agreed to pump 4.5 billion Euros ($6.6 billion) into the deal; this will certainly be good news to the German tax payer.

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