Magna "Thanks" GM for Failed Opel Deal

General Motors today announced that it will keep Opel and start restructuring on its own so all negotiations with Magna and Sberbank were only a huge waste of time. Also today, the Canadian - Austrian partsmaker thanked General Motors for the efforts the company did in the talks and emphasized, through the voice of its CEO, that it will continue to collaborate in the supplying business.

"We understand that the Board concluded that it was in GM's best interests to retain Opel, which plays an important role within GM's global organization. We will continue to support Opel and GM in the challenges ahead and wish to thank everyone who supported the Opel restructuring process for their tireless efforts and dedication over the past several months. In particular, we wish to thank our partner, Sberbank, for its significant contribution and support throughout this process," Siegfried Wolf, Magna's Co-Chief Executive Officer, stated in an official statement.

Under the terms of the preliminary deal, Magna could take control of a 55 percent stake in Opel, together with its Russian partner Sberbank. GM was believed to retain possession of a 35 percent share while 10 percent would have gone to Opel's employees.

Nevertheless, GM decided to keep Opel and continue the expansion plans, even in Russia where the company sees an excellent opportunity to increase its business.

“While strained, the business environment in Europe has improved,” GM CEO Fritz 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.”