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Analysts: GM Never Wanted to Sell Opel

General Motors finally confirmed that it will keep Opel and won't sell it to Magna International, the Canadian - Austrian partsmaker that has been longly regarded as the new owner of the German brand. Just after the US-based manufacturer announced its decision, reactions started to pour in, with some analysts even claiming that General Motors never wanted to sell the company but was forced to do so by the financial situation.

Such a scenario is actually supported by GM's official statement that claims the US company will keep Opel thanks to financial health restored after it emerged from bankruptcy.

"GM never really wanted to get rid of Opel; they were being forced into it because of their financial situation. A lot of GM cars have come out of Opel's engineering, so Opel provides a very useful service for GM globally. Maintaining that foothold there is something that is beneficial for GM in the long run,"
Aaron Bragman, research analyst, IHS Global Insight, was quoted as saying by Autonews.

"What it means for Opel on the other hand becomes a bigger question. If Opel goes into bankruptcy, they could get rid of a lot of debt and manufacturing costs and Opel could be very profitable for them outside bankruptcy. Otherwise, Opel could be a big drain for GM."

Additionally, Van Conway, Principal, Conway Mackenzie restructuring specialists, says that GM decided to keep Opel because the company couldn't get the value it was expecting.

"I don't think it's a surprise in a sense, in that it seems that they were having difficulty getting something done there. ... I assume they couldn't get the value out of it that they expected. It's like everything else you put up for sale: If their expectations were met they probably would have sold it. But they couldn't get the economic number they were looking for."
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About the author: Bogdan Popa
Bogdan Popa profile photo

Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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