GM says Magna, Sberbank to acquire Opel

• Source: Sina.com
• [08:41 September 11 2009]
• Comments

GM has been trying to unload Ruesselsheim, Germany-based Opel since it ran into severe financial trouble earlier this year. Industry analysts say the unit has too many employees and too much factory capacity for its sales level and its costs are too high.

But Opel and its engineers are also highly integrated into GM's global product development system, designing the underpinnings for its next generation of small and midsize cars.

The announcement came after months of wrangling over who was best suited to take on Adam Opel GmbH, a Germany-based automaker with factories in Poland, Spain, Belgium, Portugal and Britain, where it makes the Vauxhall brand.

"The hard work over the past two weeks to clarify open issues and resolve details in the German financial package brought GM and its board of directors to recommend Magna and Sberbank," said Fritz Henderson, GM's chief executive said.

"We thank all parties involved in the intensive process of the last few months — especially the German government — for their continued support that enables this new venture."

Henderson said GM will continue to work with Opel and Vauxhall to develop and produce cars, keeping Opel and Vauxhall as a part of GM's product development organization, "allowing all parties to benefit from the exchange of technology and engineering resources.

"The current portfolio of Opel and Vauxhall cars and the models in the pipeline are a strong basis for future success."

"Participating in GM's global technology development and purchasing organizations secures important economies of scale for Opel and Vauxhall and other GM brands," the statement said.

(Agencies)