Breaking: GM Board Decides to Keep Opel

Joe in T.O. · 11-03-2009, 05:13 PM

Breaking: GM Board Decides to Keep Opel
Is the Opel Saga finally over...again?
www.gminsidenews.com
November 3, 2008

DETROIT – Given an improving business environment for GM over the past few months, and the importance of Opel//Vauxhall to GM’s global strategy, the GM Board of Directors has decided to retain Opel and will initiate a restructuring of its European operations in earnest.

“GM will soon present its restructuring plan to Germany and other governments and hopes for its favorable consideration,” said Fritz Henderson, president and CEO. “We understand the complexity and length of this issue has been draining for all involved. However, from the outset, our goal has been to secure the best long term solution for our customers, employee, suppliers, and dealers, which is reflected in the decision reached today. This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall’s long-term future.”

On a preliminary basis, the GM plan entails total restructuring expenses of about € 3 billion, significantly lower than all bids submitted as part of the investor solicitation. GM will work with all European labor unions to develop a plan for meaningful contributions to Opel's restructuring. While Opel continues to outperform against its viability plan assumptions and immediate liquidity is stable, time is of the essence.

“While strained, the business environment in Europe has improved.” Henderson said. “At the same time, GM’s overall financial health and stability have improved significantly over the past few months, giving us confidence that the European business can be successfully restructured. We are grateful for the hard work of the German and other EU governments in navigating this difficult economic period. We’re also appreciative of the effort put forward by Magna and its partners in Russia in trying to reach an equitable agreement.”

Henderson added that GM also hopes to build on its already significant business in Russia and to resume work directly with GAZ to contribute to both the modernization of its operations and the joint development of the Russian vehicle market on a mutually attractive basis. More details on the next steps in the restructuring will be provided as the plans and developments warrant.

GMFAN85 · 11-03-2009, 05:13 PM

This news story was in two different articles.

http://in.reuters.com/article/rbssCo...EN599920091103

http://www.monstersandcritics.com/ne...-not-sell-Opel

Idler Arm · 11-03-2009, 05:15 PM

most resourceful thing they have done in many, many years. a sign of intelligent life perhaps?

AMERICA 123 · 11-03-2009, 05:19 PM

Yeeees !

Hopefully that's how it ends up - which would be great news for GM ...... and real bad news for everybody else.

TuffG929 · 11-03-2009, 05:29 PM

sweet...they need to work towards profitability though.

mgescuro · 11-03-2009, 05:34 PM

Losing Opel would have been synonymous with hacking off a leg of GM.

Glad they're keeping it.

CrunkedRL · 11-03-2009, 05:39 PM

Agreed! This was definitely a wise move.

doh · 11-03-2009, 05:40 PM

The workers said they would Strike if GM kept Opel.

ne_one · 11-03-2009, 05:47 PM

Quote:

The meeting of the board came after European Union officials asked GM to confirm that it would have decided to sell Opel to Magna if it had known that 4.5 billion euros ($6.58 billion) in state aid promised by Germany would go to any buyer.

I'm sure it's primarily the phrasing, but I understand this to mean that the EU was questioning GM on whether it felt it was being strong-armed by the German government in approving a sale to Magna.

By extension, does this also imply that the proviso that GM divest its interest in Opel in order to receive financial support was also against EU rules?

-World Class- · 11-03-2009, 05:49 PM

Here's another link:

http://online.wsj.com/article/SB1257...IDDLTopStories

THANK YOU. I hope this is the end of this excruciatingly long drama.

jcgable · 11-03-2009, 05:49 PM

Praise Jeebus!

killerrd2 · 11-03-2009, 05:53 PM

Here's another link to the story:

http://news.bbc.co.uk/2/hi/business/8341485.stm

killerrd2 · 11-03-2009, 05:54 PM

Here's another link to the story.

http://news.bbc.co.uk/2/hi/business/8341485.stm

Thank goodness they're keeping OPEL!!!

jzchev28 · 11-03-2009, 06:03 PM

YAY! im glad to hear this as hopefully they can share some of their diesle car engines here some day....i wish

FenwickHockey65 · 11-03-2009, 06:04 PM

Good decision indeed.

11-03-2009, 05:13 PM	#1 (permalink)
Joe in T.O. 3.6 Liter SIDI V6 Join Date: Oct 2005 Location: Toronto Drives: 2002 Trailblazer & 1970 GTO Convertible 2007 Ava Posts: 1,155	Breaking: GM Board Decides to Keep Opel Breaking: GM Board Decides to Keep Opel *Is the Opel Saga finally over...again?* www.gminsidenews.com November 3, 2008 DETROIT – Given an improving business environment for GM over the past few months, and the importance of Opel//Vauxhall to GM’s global strategy, the GM Board of Directors has decided to retain Opel and will initiate a restructuring of its European operations in earnest. “GM will soon present its restructuring plan to Germany and other governments and hopes for its favorable consideration,” said Fritz Henderson, president and CEO. “We understand the complexity and length of this issue has been draining for all involved. However, from the outset, our goal has been to secure the best long term solution for our customers, employee, suppliers, and dealers, which is reflected in the decision reached today. This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall’s long-term future.” On a preliminary basis, the GM plan entails total restructuring expenses of about € 3 billion, significantly lower than all bids submitted as part of the investor solicitation. GM will work with all European labor unions to develop a plan for meaningful contributions to Opel's restructuring. While Opel continues to outperform against its viability plan assumptions and immediate liquidity is stable, time is of the essence. “While strained, the business environment in Europe has improved.” Henderson said. “At the same time, GM’s overall financial health and stability have improved significantly over the past few months, giving us confidence that the European business can be successfully restructured. We are grateful for the hard work of the German and other EU governments in navigating this difficult economic period. We’re also appreciative of the effort put forward by Magna and its partners in Russia in trying to reach an equitable agreement.” Henderson added that GM also hopes to build on its already significant business in Russia and to resume work directly with GAZ to contribute to both the modernization of its operations and the joint development of the Russian vehicle market on a mutually attractive basis. More details on the next steps in the restructuring will be provided as the plans and developments warrant. Last edited by nsap : 11-03-2009 at 06:37 PM.

11-03-2009, 05:13 PM	#2 (permalink)
GMFAN85 2.4 Liter SIDI ECOTEC Join Date: Feb 2003 Posts: 442	Breaking News: GM board opts to keep Opel This news story was in two different articles. http://in.reuters.com/article/rbssCo...EN599920091103 http://www.monstersandcritics.com/ne...-not-sell-Opel

11-03-2009, 05:15 PM	#3 (permalink)
Idler Arm 2.4 Liter SIDI ECOTEC Join Date: Jul 2009 Posts: 135	Re: Breaking News: GM board opts to keep Opel most resourceful thing they have done in many, many years. a sign of intelligent life perhaps?

11-03-2009, 05:19 PM	#4 (permalink)
AMERICA 123 7.0 Liter LS7 V8 Join Date: Aug 2007 Drives: The bailout pkg Posts: 4,729	Re: Breaking News: GM board opts to keep Opel Yeeees ! Hopefully that's how it ends up - which would be great news for GM ...... and real bad news for everybody else. __________________ In regards to the VOLT With a typical annual driving pattern < totaling 11,390 miles - including three 450 mile trips and a bunch of 40 mile plus per days > and assuming you only charge <once > per overnight: Vehicle ……………… Gallons per year Volt ………………….. 37 Prius ………………… 228 30 MPG car ………… 380 20 MPG car ………… 570 Dave G.

11-03-2009, 05:29 PM	#5 (permalink)
TuffG929 6.2 Liter LS3 V8 Join Date: Oct 2005 Location: New York Drives: 2000 BMW 328i 2001 Chevy Suburban Posts: 3,400	Re: GM to keep Opel sweet...they need to work towards profitability though.

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11-03-2009, 05:34 PM	#6 (permalink)
mgescuro R2-D2 Astromech Droid Join Date: Jan 2003 Location: San Francisco Bay Area Posts: 28,194	Re: GM to keep Opel Losing Opel would have been synonymous with hacking off a leg of GM. Glad they're keeping it. __________________ 2000 Saab 9-5 Aero 1995 Mercedes C280 1994 Jaguar XJ6 ...when all hope is gone, you know sad songs say so much... GMReinvention.com Cadillac: The Art of Irrelevancy *SAN FRANCISCO 2020!!*

11-03-2009, 05:39 PM	#7 (permalink)
CrunkedRL 5.3 Liter Vortec V8 Join Date: Feb 2006 Location: Columbus,OH Drives: 1998 Saturn SL2 2004 Saturn Vue RL Posts: 1,269	Re: GM to keep Opel Agreed! This was definitely a wise move. __________________ Current Fleet: 04' Saturn Vue RL 3.5L Honda V6 98' Saturn SL2 1.9L 16 Valve DOHC I4

11-03-2009, 05:40 PM	#8 (permalink)
doh 6.2 Liter LS9 Supercharged V8 Join Date: Sep 2003 Location: N.W.Ontario Posts: 5,559	Re: GM to keep Opel The workers said they would Strike if GM kept Opel.

11-03-2009, 05:49 PM	#10 (permalink)
-World Class- 2.4 Liter SIDI ECOTEC Join Date: Dec 2008 Location: The South Drives: '99 Olds Alero GLS coupe Posts: 114	Re: GM to keep Opel Here's another link: http://online.wsj.com/article/SB1257...IDDLTopStories THANK YOU. I hope this is the end of this excruciatingly long drama. __________________

11-03-2009, 05:49 PM	#11 (permalink)
jcgable 2.4 Liter SIDI ECOTEC Join Date: Nov 2007 Posts: 438	Re: GM to keep Opel Praise Jeebus!

11-03-2009, 05:53 PM	#12 (permalink)
killerrd2 3.0 Liter SIDI V6 Join Date: May 2003 Location: Great Lakes Road Warrior Drives: '10 Corolla - Where's the Chevy CRUZE?!? Posts: 610	Re: Breaking News: GM board opts to keep Opel Here's another link to the story: http://news.bbc.co.uk/2/hi/business/8341485.stm __________________ "Not everything that can be counted counts, and not everything that counts can be counted." -- Albert Einstein

11-03-2009, 05:54 PM	#13 (permalink)
killerrd2 3.0 Liter SIDI V6 Join Date: May 2003 Location: Great Lakes Road Warrior Drives: '10 Corolla - Where's the Chevy CRUZE?!? Posts: 610	Re: GM to keep Opel Here's another link to the story. http://news.bbc.co.uk/2/hi/business/8341485.stm Thank goodness they're keeping OPEL!!! __________________ "Not everything that can be counted counts, and not everything that counts can be counted." -- Albert Einstein

11-03-2009, 06:03 PM	#14 (permalink)
jzchev28 2.8 Liter Turbocharged V6 Join Date: Oct 2005 Location: Toledo, OH Drives: 2000 Silverado Z71 1999 Cavi Z24 Posts: 793	Re: GM to keep Opel YAY! im glad to hear this as hopefully they can share some of their diesle car engines here some day....i wish __________________ GM.... leaping forward. Toyoder sux

11-03-2009, 06:04 PM	#15 (permalink)
FenwickHockey65 News Contributor Join Date: Dec 2007 Location: West Chester, OH Drives: Chevrolet Malibu LS, GMC Envoy SLE, GMC Sonoma SLS Posts: 9,308	Re: GM to keep Opel Good decision indeed. __________________ Proud to drive American. Proud to drive GM. Current Cars: 2007 Chevrolet Malibu LS: 2.2L ECOTEC I-4 2003 GMC Envoy SLE: 4.2L Vortec 4200 I-6 1998 GMC Sonoma SLS Ext. Cab: 4.3L Vortec 4300 V6 Former Cars: 1993 Saturn SW2 (1993-2006, 243,000 miles) 1989 GMC Safari SLT (1989-2003, 293,000 miles) Future Car: 2010 Chevrolet Camaro 2LT RS: 3.6L SIDI High-Feature V6

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