GM to Keep Opel

Even if GM is yet to make an official announcement regarding Opel, several media reports are already hinting that the American manufacturer wants to keep the German brand and save it by itself. We already knew that GM is considering such an option but, according to Sky News and Britain's Press Association, the US-based carmaker is getting ready to officially confirm this.

On the other hand, two bankers close to the matter denied the reports and said General Motors will actually sell the German unit to one of the interested suitors, Magna or RHJ. "They will sell it under conditions," one of the sources was quoted as saying by Autonews.

General Motors has already confirmed that the company's management made a decision that will be communicated to those involved in the talks in 24 hours.

"General Motors' board of directors approved a course of action for its Opel subsidiary and will be communicating its recommendation to the German government, other European governments, both bidders, employees and the Opel trust board over the next 24 hours," GM said.

Opinions on a scenario in which General Motors would keep Opel were pretty reluctant in the past few days, with German officials claiming that it's unlikely to see the US-based company retaining its German unit. Mostly because GM would need government's support to save Opel which, at this time, is quite questionable because Germany is backing Magna and its Russian investors.

Furthermore, General Motors would have to raise around $6 billion to save Opel's domestic operations and pay its debts to the German government.

A final decision is expected very soon so we'll keep you posted.