Putin Thinks GM's Decision Is Not Decisive

Russian Prime Minister Vladimir Putin said in a statement that GM's decision to keep Opel and save the company on its own is not decisive as the General Motors' board is not the one to decide but Opel's trust. General Motors announced yesterday, after the board held its monthly meeting on November 3, that it will after all retain possession of Opel and cancel a potential sale to Magna International.

The Canadian - Austrian partsmaker negotiated the acquisition several months and was believed to be the new owner of the German brand.

"It is well known that GM has earlier transferred the management of its European division to a trust, which has cleared the deal, and all further steps should be de facto decided by the trust," spokesman Dmitry Peskov quoted Putin as saying according to a report by Reuters.

"Therefore the GM board decision is surprising. The Russian government had been ready to share risks including financial risks to reduce pressure on the German government and encourage the deal because the consortium planned to invest in the Russian car industry," he added.

Magna International said in a statement yesterday that it will continue to support both Opel and General Motors and collaborate with the companies 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.