Merkel Surprised by GM Keeping Opel

German Chancellor Angela Merkel was very surprised to find out that General Motors will after all keep Opel, in spite of all the efforts to sell the company to Magna International. Angela Merkel is one of the GM officials who showed support for Magna several times, even claiming that she could intervene in the talks to back the Canadian - Austrian partsmaker.

Interestingly, Angela Merkel yesterday traveled to the United States and met with US president Barack Obama but even so, he knew nothing about GM's decision.

Merkel backed Magna mostly thanks to the initial takeover proposal submitted by the Canadian - Austrian firm and repeatedly said that Germany is ready to provide support in case the deal goes through.

"There are still a number of questions to be cleared up. But the Magna concept offers excellent starting points," said Merkel at a joint news conference with Russian President Dmitry Medvedev earlier this year. "It offers Opel a chance and also creates the possibility of establishing a strategic partnership in the car sector with Russia."

Furthermore, she always emphasized that RHJ has slim chances to buy Opel and insisted that Magna's offer is more advantageous from several points of view.

"I have a clear preference for Magna and want to make that clear again," Merkel said according to a report by Reuters. "We are in constant talks. I am always informed. If it is necessary, I will join in, of course."

General Motors today announced its decision to retain possession of Opel and Vauxhall and start restructuring on its own. Magna on the other hand said it will continue to work with the US-based manufacturer and its German division in the supplying business.