"We have noted GM's announcement today and want to work closely with GM to understand their plan for the business and what it means for the UK," a Department for Business spokesman said. "We have always said that if the right long-term, sustainable solution is identified, then the government would be willing to provide funding to this."
The United Kingdom was one of the countries that supported Magna International in its attempt to take over Opel and its British sibling Vauxhall. After several rounds of negotiations, the UK agreed to provide funds to Magna and back its reorganization plans for the local plants.
Nevertheless, GM announced after the monthly meeting of the board that it no longer wants to sell the company to Magna International and will attempt to start restructuring on its own. The reason? General Motors is in a better position when talking about financial results so it has the resources needed to keep Opel alive.
“GM will soon present its restructuring plan to Germany and other governments and hopes for its favorable consideration,” said Fritz Henderson, president and CEO.
“We understand the complexity and length of this issue has been draining for all involved. However, from the outset, our goal has been to secure the best long term solution for our customers, employee, suppliers, and dealers, which is reflected in the decision reached today. This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall’s long-term future.”
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