In a surprise u-turn, Fritz Henderson, General Motors president and CEO, has announced that the car maker will not sell its Opel/Vauxhall brands.
The news comes just two months after the GM Board recommended the sale of a majority stake in Opel/Vauxhall to Russian firm Magna International/Sberbank.
GM said the decision to retain its European operations was made against the backdrop of â€œan improving business environmentâ€.
The company now plans to begin an estimated â‚¬ 3 billion restructure of Opel/Vauxhall â€œin earnestâ€.
â€œWhile strained, the business environment in Europe has improved,â€ said Fritz Henderson.
â€œAt the same time, GMâ€™s overall financial health and stability have improved significantly, giving us confidence that the European business can be successfully restructured.â€
In a statement this morning, Business Secretary Lord Mandelson said he was â€œkeen for very early discussions with GM over their plans for the business and how they will affect British plants and workers”.
He added: “I have always said that if the right long term sustainable solution is identified, then the Government would be willing to support this.â€