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GM Board Decides to Retain Opel/Vauxhall

Thu, 05 Nov 2009

DETROIT: 5-11-2009 – Given an improving
business environment for GM over the past few months, and the importance of
Opel/Vauxhall to GM’s global strategy, the GM Board of Directors has decided
to retain Opel and will initiate a restructuring of its European operations in
earnest.


 


“GM will soon present
its restructuring plan to Germany and other governments and hopes for its favourable
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 €3
billion, significantly lower than all bids submitted as part of the investor
solicitation.  GM will work with
all European labour 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.”


 


Henderson added that GM
also hopes to build on its already significant business in Russia and to resume
work directly with GAZ to contribute to both the modernisation of its
operations and the joint development of the Russian vehicle market on a
mutually attractive basis.  More
details on the next steps in the restructuring will be provided as the plans
and developments warrant.


 


 


About
General Motors:
 
General Motors, one of the world’s largest automakers, traces its roots
back to 1908.  With its global
headquarters in Detroit, GM employs 209,000 people in every major region of the
world and does business in some 140 countries.  GM and its strategic partners produce cars and trucks in 34
countries, and sell and service these vehicles through the following
brands:  Buick, Cadillac,
Chevrolet, GMC, GM Daewoo, Holden, Opel, Vauxhall and Wuling.  GM’s largest national market is the
United States, followed by China, Brazil, the United Kingdom, Canada, Russia
and Germany.  GM’s OnStar
subsidiary is the industry leader in vehicle safety, security and information
services.  General Motors acquired
operations from General Motors Corporation on July 10, 2009, and references to
prior periods in this and other press materials refer to operations of the old
General Motors Corporation.  More
information on the new General Motors can be found at www.gm.com.


 

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