VH_Supra26
02-19-2009, 09:27 PM
by Alex Kaufmann
http://www.motorauthority.com/content/thumbs/o/p/opel_insignia_main_630-1009-630x360.jpg
GM will likely sell a portion of Opel to the German government but there is still expected to be some plant closures
General Motors, on the brink of bankruptcy, may sell a stake in its Opel division as it attempts to cut costs and focus on its core brands back in the United States. The company confirmed in its recent viability plan that it will sell Hummer, downsize Pontiac, and stop building new products for Saturn beyond the 2012 model year.
Until now, however, there haven’t been any solid details concerning the future of GM's European brands, Opel (Vauxhall) and Saab. GM has announced that it is seeking to reduce costs further in Europe without resorting to firings and plant closings, and one of the options under consideration is selling a stake in the brands.
The information comes from GM Europe President Carl-Peter Forster, who told Automotive News that management is willing to consider strategic third-party partnerships, alliances and equity stakes in case such an approach is seen as beneficial for a viable and sustainable future.
There have also been reports that GM may sell its entire Vauxhall division, but a GM spokeswoman revealed that any sale would only concern Opel and even then it would likely be only a portion sold to the German government.
As for Saab, a bankruptcy announcement is expected to come tomorrow and production at the company’s Trollhättan has already stopped. The only activity that is expected to remain will be the fulfilment of servicing and warranty claims, which GM and Saab must comply with by law.
GM confirmed in its viability plan that it would pull out all financial support for Saab by the end of this month and yesterday the Swedish government also rejected requests from the Detroit carmaker to help prop up the company until it could function as a standalone firm.
All Content Copyright 2006-2008 Motor Authority
http://www.motorauthority.com/report-gm-likely-to-sell-opel-stake-to-german-government-saab-to-get-the-axe.html
http://www.motorauthority.com/content/thumbs/o/p/opel_insignia_main_630-1009-630x360.jpg
GM will likely sell a portion of Opel to the German government but there is still expected to be some plant closures
General Motors, on the brink of bankruptcy, may sell a stake in its Opel division as it attempts to cut costs and focus on its core brands back in the United States. The company confirmed in its recent viability plan that it will sell Hummer, downsize Pontiac, and stop building new products for Saturn beyond the 2012 model year.
Until now, however, there haven’t been any solid details concerning the future of GM's European brands, Opel (Vauxhall) and Saab. GM has announced that it is seeking to reduce costs further in Europe without resorting to firings and plant closings, and one of the options under consideration is selling a stake in the brands.
The information comes from GM Europe President Carl-Peter Forster, who told Automotive News that management is willing to consider strategic third-party partnerships, alliances and equity stakes in case such an approach is seen as beneficial for a viable and sustainable future.
There have also been reports that GM may sell its entire Vauxhall division, but a GM spokeswoman revealed that any sale would only concern Opel and even then it would likely be only a portion sold to the German government.
As for Saab, a bankruptcy announcement is expected to come tomorrow and production at the company’s Trollhättan has already stopped. The only activity that is expected to remain will be the fulfilment of servicing and warranty claims, which GM and Saab must comply with by law.
GM confirmed in its viability plan that it would pull out all financial support for Saab by the end of this month and yesterday the Swedish government also rejected requests from the Detroit carmaker to help prop up the company until it could function as a standalone firm.
All Content Copyright 2006-2008 Motor Authority
http://www.motorauthority.com/report-gm-likely-to-sell-opel-stake-to-german-government-saab-to-get-the-axe.html