The board of General Motors has decided to keep Opel. This has unravelled months of tough negotiations to sell the European unit to a Russian-backed group led by the Canadian company Magna.
GM directors say that improving business conditions and the strategic importance of Opel prompted the decision. It will reportedly soon present its restructuring plan to Germany and other governments. Restructuring Opel on its own, GM says, would cost it some three billion euros. GM’s board had earlier opted to sell a 55 percent stake in the loss-making Opel unit to Magna. Opel’s workforce was supposed to receive a 10 percent stake in the new company in return for 265 million euros in annual cost concessions.