GM pulls out of Vauxhall sale

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 “an improving business environment”.

The company now plans to begin an estimated € 3 billion restructure of Opel/Vauxhall “in earnest”.

“While strained, the business environment in Europe has improved,” said Fritz Henderson.

“At the same time, GM’s overall financial health and stability have improved significantly, giving us confidence that the European business can be successfully restructured.”

In a statement this morning, Business Secretary Lord Mandelson said he was “keen 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.”

Published by emmabutcher

Emma has been CAT's editor since January 2008. There isn't much she doesn't know about the aftermarket - and her favourite topic is definitely BER!

ECP BOSS WARNS OF BLOCK EXEMPTION ‘EXISTENTIAL THREAT’

Andy Hamilton rails against VM ‘mini monopolies’ and demands that the UK government and the CMA take action in face of ‘abuse’ of the rules

Read More

PRA BOSS CALLS FOR FORECOURT ‘PINGDEMIC’ EXCLUSION

‘Forecourt workers are essential and should be exempt from self-isolation requirements if fully vaccinated’, say PRA

Read More

YORKSHIRE EXHAUST SPECIALISTS SAY ‘YES’ TO AAG BUYOUT

Leeds-based firm had been a UAN member and employed over 60 people

Read More

NEW TRADE COALITION FORMED TO FIGHT BLOCK EXEMPTION THREAT

AFCAR comprises of bosses from four major UK trade bodies

Read More

HALFORDS TO HIRE 700 TECHNICIANS

Chain hiring following a busy year for vehicle mobile servicing and pedal cycles

Read More

Go to comments

Your email address will not be published. Required fields are marked *