General Motors' board yesterday held its monthly meeting in which it studied the latest changes in Magna's takeover proposal for Opel. Soon after that, GM's CEO Fritz Henderson stepped in front of the media representatives and announced that the US-based manufacturer will retain possession of the German brand and will start restructuring Opel on its own.
This basically means that all negotiations with Magna and Sberbank came to a halt, with the Canadian - Austrian losing the race for the German brand, in spite of the agreements reached with labor unions across Europe.
“GM will soon present its restructuring plan to Germany and other governments and hopes for its favorable consideration,” said Fritz Henderson, president and CEO. “We understand the complexity and length of this issue has been draining for all involved. However, from the outset, our goal has been to secure the best long term solution for our customers, employee, suppliers, and dealers, which is reflected in the decision reached today. This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall’s long-term future.”
Additionally, General Motors will attempt expanding Opel's operations in Russia by joining forces with GAZ. More details on the restructuring process will be provided in the near future.
“While strained, the business environment in Europe has improved,” Henderson said. “At the same time, GM’s overall financial health and stability have improved significantly over the past few months, giving us confidence that the European business can be successfully restructured. We are grateful for the hard work of the German and other EU governments in navigating this difficult economic period. We’re also appreciative of the effort put forward by Magna and its partners in Russia in trying to reach an equitable agreement.”
This basically means that all negotiations with Magna and Sberbank came to a halt, with the Canadian - Austrian losing the race for the German brand, in spite of the agreements reached with labor unions across Europe.
“GM will soon present its restructuring plan to Germany and other governments and hopes for its favorable consideration,” said Fritz Henderson, president and CEO. “We understand the complexity and length of this issue has been draining for all involved. However, from the outset, our goal has been to secure the best long term solution for our customers, employee, suppliers, and dealers, which is reflected in the decision reached today. This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall’s long-term future.”
Additionally, General Motors will attempt expanding Opel's operations in Russia by joining forces with GAZ. More details on the restructuring process will be provided in the near future.
“While strained, the business environment in Europe has improved,” Henderson said. “At the same time, GM’s overall financial health and stability have improved significantly over the past few months, giving us confidence that the European business can be successfully restructured. We are grateful for the hard work of the German and other EU governments in navigating this difficult economic period. We’re also appreciative of the effort put forward by Magna and its partners in Russia in trying to reach an equitable agreement.”