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General Motors pulls out of selling Vauxhall and Opel
The Telegraph ^ | 11/4/2009 | James Quinn and Graham Ruddick

Posted on 11/03/2009 8:55:33 PM PST by bruinbirdman

General Motors last night staged a dramatic U-turn by choosing to hold on to its European Opel and Vauxhall subsidiaries in a major snub to Magna International and the German government.

The surprise decision by GM places a further question mark over the future of the company’s van plant at Luton, which employs around 1,500 workers, but is likely to safeguard the future of its Ellesmere Port facility, where it employs about 2,000 workers.

The 11th-hour volte-face, made during a GM board meeting in Detroit, is understood to have come as a result of the potential threat to the Magna deal by Neelie Kroes, the European competition commissioner, who could have blocked it over the validity of €4.5bn (£4bn) of state aid being offered by Germany.

In addition, GM’s board is believed to have concerns about the potential for protracted disputes with other European governments over the German-backed solution for Opel, which would have seen Magna take a 55pc stake in the business.

Instead, Fritz Henderson, GM chief executive, citing the company’s own improving financial situation as a result of its Chapter 11 financial restructuring, said the company will set out a €3bn restructuring plan within the next few weeks.

Mr Henderson said holding on to its European businesses was “the most stable and least costly approach for securing Opel/Vauxhall’s long-term future”.

The restructuring will be funded through European loan guarantees from individual governments, with a Department for Business spokesman saying “the Government would be willing to provide funding to this” if it proves to be the “right long-term sustainable solution”. A spokesman for trade union Unite said the decision was “great news”.

GM will now have to repay a €1.5bn German bridging loan by the end of November.

Magna and the German authorities declined to comment.

(Excerpt) Read more at telegraph.co.uk ...


TOPICS: Business/Economy; Crime/Corruption; Government; News/Current Events
KEYWORDS: automakers; generalmotors; opel

1 posted on 11/03/2009 8:55:34 PM PST by bruinbirdman
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To: bruinbirdman

I may be wrong but I think I heard that Vauxhall is a big seller in England.....


2 posted on 11/03/2009 9:00:27 PM PST by Kimmers (Be the kind of person when your feet hit the floor each morning the devil says, Oh crap, she's awake)
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To: Kimmers
I may be wrong but I think I heard that Vauxhall is a big seller in England.....

I may be wrong but I think most of GM's non US sales are and have been good. (heck, their best US 'division' was GMAC and they sold that off first!)

3 posted on 11/03/2009 9:03:13 PM PST by This_far (Mandatory insurance! I thought it was about health care?)
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To: bruinbirdman
I always wanted a little Opel GT when they first came out. But they never did make it into a convertible and that is what I wanted in a sports car.
4 posted on 11/03/2009 9:05:30 PM PST by guitarplayer1953 (Romak 7.62X54MM, AK47 7.62X39MM, LARGO 9X23MM, HAPINESS IS A WARM GUN BANG BANG YEA YEA)
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To: bruinbirdman
I can say why: General Motors NEEDS the small car technology developed by Opel to compete against a resurgent Ford. Remember, the Chevrolet Cruze coming fall 2010 uses a LOT of Opel technology, and the replacement for the long-in-the-tooth Chevrolet Aveo also uses a lot of Opel technology. And now, there is talk the next-generation Opel Meriva "tall wagon" may be headed for the US market, sold under the Chevrolet nameplate.
5 posted on 11/03/2009 9:05:53 PM PST by RayChuang88 (FairTax: America's economic cure)
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To: This_far
I saw the Vauxhall on Top Gear. I thought it was a neat car, man was I surprised that it was a GM product. Why didn't they produce something like that in the US ?

I guess between the government standards and the unions it was a no go.

6 posted on 11/03/2009 9:07:51 PM PST by Kimmers (Be the kind of person when your feet hit the floor each morning the devil says, Oh crap, she's awake)
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To: bruinbirdman

Did they check with Chairman Baraq? He is wise.


7 posted on 11/03/2009 9:09:11 PM PST by clintonh8r (My country. Not my government.)
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To: Kimmers
I guess between the government standards and the unions it was a no go.

Nah, more 'upper' mgt. (I have a few years w/the company)
They believed they knew what we wanted to buy (and if we didn't they'd tell us).

Take a peek at GM's website. They USED to show all of their brands and products (Trains to washing machines, US and Foreign). I used to get it in the yearly prospectus' (those cost a mint to make/send out too!)

Eh, not a night to yak about that... to much other GOOD news to read about. later

8 posted on 11/03/2009 9:14:14 PM PST by This_far (Mandatory insurance! I thought it was about health care?)
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To: bruinbirdman

Government Motors strikes again.


9 posted on 11/03/2009 10:30:39 PM PST by SeaWolf (Orwell must have foreseen the 21st Century US Congress when he wrote 1984)
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