GM Motors decides of keeping and reshaping the Opel Business

November 05, 2009 / by / 0 Comment

With the new prospect of government Aid general motors’ have decided that they will keep their opal business and restructure it. GM is expecting that this new plan will cost those $4.42 billion (3 million Euros), which it says is lower than costs associated with outside bids for the company.

 sPhoto by conhunter

About this matter the GM CEO Fritz Henderson in an interview said “We understand the complexity and length of this issue has been draining for all involved. However, from the outset, our goal has been to secure the best long-term solution for our customers, employee, suppliers, and dealers, which is reflected in the decision reached today. This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall’s long-term future.”

The expert car analysts were of the opinion that this new announcement by GM was quite expected as GM can’t leave its opel business because of the financial situation they were facing. GM’s board made the decision at its monthly meeting Nov. 3, reversing an agreement made in September. GM’s board agreed to sell Opel to Magna but had initially balked at the deal, fearing the sale would cede control of a huge presence in the European market and give technology to Russian automakers.

Now we have to see how well this plan works and this relies heavily on the platoform developed by opel.

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