General Motors cancels Opel sale
Posted November 4, 2009on:
Rising car sales in the US and throughout the world have forced the halt of GM’s sale of Opal and Vauxhall to Canadian car parts firm Magna. The giant GM motor company was planning on selling majority shares to the Magna Company. GM added that it had also come to its decision because of the importance of Opel and Vauxhall to its global strategy. This decision came with much anger from many European companies, the planned sale of Opel has been dragging on for months, and the German government had pledged Magna 4.5billion Euros ($6.7billion) of loans. The US giant’s decision to sell its main European business was made after it was forced to announce a loss of $30.9billion for 2008, after its sales plummeted in the global recession. Car analysts say they were not too surprised by GM’s announcement. “GM never really wanted to get rid of Opel, they were being forced into it because of their financial situation,” said Aaron Bragman of IHS Global Insight.