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!

SYNETIQ SOLD FOR £225m

US-based Insurance Automotive Auctions expands UK presence with auctioneer and dismantler

Read More

ECP TO DISH OUT £400 BATTERY TESTERS

Garages will need to hit battery sales targets if they want to keep the devices

Read More

FAI AUTOMOTIVE ACQUIRED FOR £27M

South Africa-based Motus Aftermarket Parts adds to its portfolio, Jonathan Alexander to remain CEO

Read More

NI BIENNIAL MOT OPPOSED

NFDA on NI MOT frequency change: “Not the correct solution to the issues currently facing the NI Testing Scheme”

Read More

BODYSHOP BOUGHT OUT IN PRE-PACK DEAL

AF Smart Repairs bought out of administration by existing management

Read More

Go to comments

Your email address will not be published.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