GM to support Opel, no plans to sell.
11 April 2013 - US carmaker General Motors Company (NYSE:GM) will not dispose of its German unit Adam Opel AG and said it had decided to pour EUR4bn (USD5.2bn) in the loss-making brand by the end of 2016 instead to back development of new models.
Reuters cited chairman Steve Girsky as saying that there was no truth to the speculation that GM could sell Opel.
Addressing reporters, GMa[euro](tm)s chief executive Dan Akerson said the US group fully supports Opel, as it views the German unit to be significant to its success. GM wants to have strong design, development, manufacturing and sales operations in Europe, Girsky explained.
However, the CEO kept silent when asked whether GMa[euro](tm)s planned investment in Opel was a guarantee that the group would keep the brand until 2016, Reuters said.
There have been rumours that GM could set up a joint venture with French alliance partner PSA Peugeot Citroen SA (EPA:UG) to hold Opela[euro](tm)s assets, or sell the entire unit.
After reviewing Opela[euro](tm)s progress in turning around its business, GM now expects the unit to become profitable only by the middle of the decade. The German carmaker plans 23 new models and 13 new engines in an effort to achieve this goal.Country: GermanySector: Motor VehiclesTarget: Adam Opel AGBuyer: PSA Peugeot Citroen SAVendor: General Motors CompanyType: DivestmentStatus: Denied
|Printer friendly Cite/link Email Feedback|
|Publication:||M & A Navigator|
|Date:||Apr 11, 2013|
|Previous Article:||M&A Navigator: Deal pipeline - 10 April.|
|Next Article:||Mechel negotiates sale of mining stake with various parties.|