Opel breathes a sigh of relief
The German automaker, owned since 1929 by General Motors, is apparently not going to be thrown to the hounds of bankruptcy: a last-minute deal this weekend will reduce GM’s holdings to 35 percent, with 35 percent to be owned by Sberbank in Russia, 20 percent by Canadian parts supplier Magna, and 10 percent by Opel employees. Magna and Sberbank will kick in 500 to 700 million euros to finance the deal, and will seek loan guarantees from the German government. GM will not receive any cash: their compensation will come from continued access to Opel technology. All four German plants will be kept open, though job cuts are likely.
Still unclear: the future of Vauxhall, the GM outpost in Britain, and its two assembly plants, and of the Opel plant in Antwerp, Belgium.
