MAGNA bid goes unanswered.
Wayne Gerdes -
CleanMPG - Nov. 4, 2009
Given the crushed $ vs. the Euro, the Opel Ampera would be a reasonably cost effective substitute vs. just about anything else available from any manufacturer in the EU if it were made here in the US.
GM announced that it will keep Opel under the GM corporate umbrella saying an improving business environment over the past few months, and the importance of Opel//Vauxhall to GM’s global strategy was a reason to keep it.
“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 $4.2 Billion USD, significantly lower than all bids submitted as part of the investor solicitation. GM will work with the 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.”
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