GM Decides Not to Sell Opel

Just hours ago, debates began to move rapidly towards the sale of 55% of Opel to automotive parts supplier Magna and the Russian bank Sberbank.

Last night, General Motors announced its plans, following favourable results last month, to keep brand with the lightning bolt.

The decision came suddenly, when German government chancellor Angela Merkel was visiting Washington. The German official deemed General Motors’ behaviour as totally unacceptable. Germany strongly supported the sale of Magna.

In Russia, the reaction was more moderate, but the decision did come as a surprise. The Magna-Sberbank consortium is considering taking legal action against GM’s move.

General Motors explained its decision citing the favourable conditions in Europe, and the importance of Opel and its English twin, Vauxhall, in terms of global strategy.