GM Might Sell Opel Next Week

We've heard it several times in the past but it appears that General Motors will make a final decision on Opel next week as the company's board will hold its monthly meeting to discuss the future of the German brand. It was initially believed that Opel would get sold earlier this month but, due to a number of issues that remained unresolved - mostly after Magna failed to reach an agreement with labor unions - the deal has been delayed indefinitely.

John Smith, GM group vice president corporate planning and alliances (and GM’s chief negotiator for the sale of a stake in Opel/Vauxhall), said last week that it's still in the interest of General Motors to sell the German brand and negotiations continue with the involved parties.

"Since the Trust Board approval was given, the European Union has been reviewing the Opel investor process and the circumstances surrounding the selection of Magna/Sberbank. Such a review is usual and customary when extensive government financial support is involved," he said.

Rumors surrounding the deal are claiming the Canadian - Austrian partsmaker might close the Spanish factory in case it doesn't reach an agreement with labor unions until it takes control of Opel.

"It would be a very bad option. I think the company has yet to close the sales deal with General Motors, so they would have to decouple themselves from the plant," Spain's industry minister Miguel Sebastian said in a statement last week. "But I sincerely believe it is a very positive deal in the long term, although it requires a short-term sacrifice."