General Motors Cancels Opel Sale, Workers Stage Walkout

General Motors was planning to sell its European subsidiaries Opel and Vauxhall to Canadian auto parts firm Magna and Russian bank Sberbank. Now it has decided to cancel the sale and retain these brands. There has been angry retaliation from Germany about GM’s decision about cancelling the sale as German politician fumed over the decision and workers readied walkouts to show their protest. German government and the workers were supporting the deal as they expected that the restructuring option would save more jobs in the country. Workers fear that retention of the brand with General Motors will result in deeper job cuts than Magna was planning to do.

General Motors is trying to regain its profitability with its re-invention process. Opel’s top employee representative, Klaus Franz stated that this was a “black day” for the workers and they will stage brief stoppage on Thursday.

GM issued a statement clarifying board’s decision to be important for "an improving business environment for GM over the past few months, and the importance of Opel/Vauxhall to GM's global strategy.” Fritz Henderson, President and Chief Executive said, “GM will soon present its restructuring plan to Germany and other governments and hopes for its favorable consideration."

General Motors' saga over sale of its European subsidiaries has been dragging since February 2009 and fate of nearly 10,500 workers out of a 50,000 work force has been hanging undecided.

• GM - The largest automaker delivered 9 million vehicles in 2011           January 21, 2012
• GM to make next-generation Impala at its Oshawa, Ontario plant           December 30, 2011
• General Motors to expand its base in China           December 10, 2011
• GM offers repurchasing Chevrolet Volt from customers           December 05, 2011
• General Motors India wins ‘National Safety Award 2012’ for the 3rd consecutive year           November 30, 2011
• Auto companies crippled by falling rupee; General Motors, Toyota plans price hike           November 24, 2011
• General Motors and Toyota mull car price hike as depreciating rupee shrink margins           November 23, 2011
• General Motors India sales surge marginally in October 2011           November 02, 2011
• General Motors sales surge 17.35 percent in September           October 05, 2011
• General Motors plans to exhume 5 new cars by 2014 in India           September 27, 2011
• GM India to review vehicle prices next month, a small hike is expected           September 23, 2011
• GM Motors’ Hybrid Encounters Chinese Intervention           September 07, 2011
• GM and LG join hands           August 26, 2011
• GM joins hands with LG to develop electric cars           August 26, 2011
• General Motors India to focus on smaller cities and towns to boost sales           August 16, 2011