GM's Plan B: Keep Opel

Opel's sale to Magna International is getting more complicated every hour as rumors concerning the transaction are now hinting that General Motors could keep the German brand in case the EU block the deal. It appears the US-based manufacturer is ready to maintain control of Opel but, in case this happens, it would implement deeper cost cutting measures that might include a plant closure in Germany, The Wall Street Journal wrote today citing sources close to the matter.

Meanwhile, negotiations between the involved parties continue and German offers assurances that the deal will finally get the go-ahead in the next few days.

The European Commission blocked the deal as there are "clear indications" that Opel's sale to Magna might be driven by financial reasons. Germany repeatedly supported Magna International and agreed to provide 4.5 billion euro in state guarantees, with other countries claiming that this is only a move supposed to convince the Canadian - Austrian partsmaker to cut less jobs in Opel's domestic market.

In case General Motors retains control of Opel, the company would need government funding to start restructuring or might even push the German brand into insolvency.

General Motors still hopes that a deal might be reached in the upcoming days and expects a conclusion from those involved in the talks. The company agreed last month to sell 55 percent of Opel to Magna and Sberbank, after Germany repeatedly insisted that its offer is more advantageous for the German manufacturer. General Motors initially backed Belgian firm RHJ whose offer was easier to implement as it involved less government support.