On a day when GM posted a 4% increase in sales for October, GM also announced that it is backing out of its sale of Opel. GM cited an improvement in the economy and the importance of Opel’s compact car technology as reasons for reconsidering the sale.
GM had been in discussions to sell Opel with Magna and Russia’s Gaz since May, but finally settled on keeping Opel and restructuring it. A restructuring of Opel will cost GM as much as $4.5 billion and may additionally cost thousands of jobs.
Opel is important to GM because it has excellent penetration in the European market and a lot of expertise in compact cars, both of which are important to GM as it strives to be a global company. Good choice on GM’s part…
Read the full article at The Washington Post.
