General Motors Said That They Are Not Selling Opel
General Motors has indicated that they are not interested in selling off the Opel/Vauxhall brand. GM has rejected an Italian newspaper report that Fiat is ready to acquire Opel if GM’s alliance with PSA/Peugeot Citroen has dissolved. “Opel is not for sale. GM fully stands behind Opel,” stated GM Vice Chairman Stephen Girsky. Italian daily paper Il Sole-24 Ore is reporting that Fiat CEO Sergio Marchionne is preparing a new proposal to buy Opel if GM decide is interested in selling it.
“Marchionne’s plan is to get Opel practically free, not unlike what happened with Chrysler and not unlike Fiat’s offer for Opel in 2009,” stated the Italian paper.
GM Vice Chairman Stephen Girsky is also the head of GM’s European opeartions. “Opel is a fully integrated part of GM’s global footprint and vital for GM’s future success in Europe. The GM-PSA alliance is fully on track,” stated Girsky.
Opel has not done well for GM’s bottom line. Last month Morgan Stanley said that Opel is the single biggest threat to GM’s long term financial future. Analysts are estimating that Opel will be losing an average of $1 billion per year through 2021.
Fiat acquired stake in Chrysler as of 2009 in exchange for their small-vehicle technology and management expertise. Fiat has had an interest in acquiring Opel in 2009 as GM was emerging from bankruptcy. However Canadian supplier company International and Russian companies were given exclusivity in negotiations with GM that ended after GM’s board decided to keep Opel.
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