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Confirmed: GM Will Sell Opel to Magna

GM has just announced that it will sell a 55 percent stake in Opel to Magna and Sberbank, with employees working at the German manufacturer holding 10 percent of the new company. The American manufacturer says the involved parties will agree on several terms in the upcoming weeks, including the support of the labor unions to support the deal.

"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/Sberbank," said Fritz Henderson, GM President and CEO.

"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. I’d also like to thank the Opel and Vauxhall customers for their continued loyalty. GM will continue to closely collaborate with Opel and Vauxhall to develop and produce more great cars, such as the new Insignia and the new Astra," Henderson added.

GM will continue to hold a 35 percent stake in Opel, the company said in a release. The definitive agreements will be ready to sign in the upcoming weeks and General Motors expects to close the deal in the next few months.

"GM operates many joint ventures around the world and has proven in the past that this business model delivers the right balance of independence, innovation and synergies,"
said John Smith, GM Group Vice President Business Development. "All parties will work hard to close the deal as soon as possible," he added.
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About the author: Bogdan Popa
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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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