WDET News
- GM To Retain Opel
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Nov 3, 2009Automotive & Business - Link to Audio
General Motors has announced that it not sell its Opel division. WDET’s Jerome Vaughn has more.
SOQ
GM made the announcement in a statement released at the end of the business day. The Detroit automaker says its board of directors made the decision in light of an improving business climate – and Opel’s importance to GM’s global strategy.
GM agreed in September to sell Opel to Canadian auto parts maker Magna…but European concerns about the proposal surfaced almost immediately.
Auto analyst John McElroy says the development is significant.
“It’s a real gutsy move on the part of the GM board. And it really shows how much strategic importance they place on Opel.”
GM says it will spend about three billion euros ($4.4 billion US) to restructure Opel’s operations. The Detroit automaker says more details on Opel’s restructuring will be released as the process develops.