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GM still wants to sell Vauxhall/Opel

Speculation in the German media suggests General Motors is keen to sell its loss-making Opel/Vauxhall division, and Volkswagen could be coming under pressure to step in.

The German government is said to be opposed to a sale to a Chinese company, and according to reports contacted Volkswagen when news of Opel/Vauxhall being up for sale was discovered in May.

According to AM sister publication Car, senior executives at Opel have confirmed that talks have been taking place on the potential sale, although officially the story is being dismissed as speculation.

Opel was almost sold to a consortium led by Magna and Russia's Sberbank in 2009 as GM was preparing for bankruptcy.

But at the eleventh hour, the US and Canadian governments opened their coffers and saved Detroit´s former number one with an unprecedented cash injection.

Opel and Vauxhall remained part of GM through its Chapter 11 bankruptcy reorganisation, and avoided the cull which divested their parent company GM of Saturn, Pontiac, Hummer, and Saab.

However, despite GM's fortunes improving in North America, its European division is still losing money.

Car reports: " Merkel perceives the possible sale of Opel as being of key national interest, and does not wish the future of a major employer to fall into limbo as it almost did in 2009.

"VW has the financial clout to close the deal – it is sitting on a 20bn euro kitty - and it would provide a home-team solution in the face of a possible Chinese acquisition of Opel."

  • Read the full story on the CAR website.

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