General Motors board of directors could decide today what do do with Opel, a person familiar with the planning has said. The potential sale of the German auto division, which also includes the U.K’s Vauxhall brand, has become embroiled in European politics, reports the Detroit Free Press. GM’s board is expected to hold its second day of meetings today. Last month, the board delayed a decision on Opel, fanning speculation that GM might keep Opel instead of selling a majority stake. Opel has two bidders. One is Belgian investment firm RHJ International. The other is Canadian parts-supplier Magna International and Sberbank, a Russian bank. The Magna-Sherbank bid has the support of Germany’s organized labor, which said it thinks the deal will help preserve jobs. But that offer isn’t sitting well with GM executives concerned about how the deal might impact GM’s Russian business and future technologies and vehicles. It was recently reported that Economy Minister Karl-Theodor zu Guttenberg wants the matter resolved before the Frankfurt Auto Show next week. The European Employee Forum of General Motors, the European Metalworkers’ Federation and other European unions have also jointly issued a statement, calling for a decision.
GM’s Board Could Announce Opel Fate Today
Economy Minister Karl-Theodor zu Guttenberg wants the matter resolved before the Frankfurt Auto Show next week.
September 9, 2009