GM Keeps Opel

Well, well, well - look what has transpired here. General Motors' cash crunch over the past year resulted in attempts to rid itself of global assets. That has included Saab and curiously until now, Opel. Opel's sale to Canadian supplier Magna International has been in the works for quite some time.

Now, GM is announcing the termination of that deal struck with Magna International.  That's right, after all of this wrangling, GM's Board of Directors has decided to keep Opel.

Opel has been integral to GM's current product lineup and it looks to play an even bigger role in the future. For instance, future new product like the Buick Regal is being sourced directly from the brand. Without control of Opel, GM would lose that developmental prowess, as well as a significant reach into important international markets.

Those were some of the exact reasons cited. Here is the official statement from GM's Chief Executive Officer Fritz Henderson:

"While strained, the business environment in Europe has improved.....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."

I suspect the fear of trade secrets falling into the wrong hands played an important part in this decision as well. According to GM, they will continue to persue restructuring of the brand as would a new buyer, hoping to garner governmental aid to accomplish that.

Such aid seems like more of a possibility as well given GM's continued ownership - which has been the desire of many all along. Bravo, GM! This is a smart move - glad to see common sense prevailing.