11/3/2009
General Motors Co. says its board of directors has decided to keep its European Opel unit rather than sell a 55 per cent stake to Canadian auto parts maker Magna International.
The decision came late Tuesday at a daylong meeting in Detroit, ending a year of uncertainty for the troubled Opel brand and its English sister, Vauxhall.
CEO Fritz Henderson said in a statement that GM will present its restructuring plan for Opel to the German government soon.
The move came even though Opel's unions on Tuesday reached agreement with Magna for US$390 million a year in cost cuts.
Magna, Canada's largest auto parts company and headed by Frank Stronach, had wanted to acquire Opel as a way to expand the company's sales to Russia, a prized market.
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