General Motors scraps plans to sell Vauxhall
Updated on 04 November 2009
Union bosses welcome the shock decision by General Motors to scrap plans to sell Vauxhall, describing it as an "incredible turnaround" by the US car giant.
The announcement marked an abrupt U-turn from previous plans to sell its Opel and Vauxhall brands to Canadian car parts firm Magna - a deal that threatened thousands of jobs across Europe.
The GM board have now opted to retain and restructure its European subsidiaries.
Tony Woodley, secretary general of Unite, said he was "absolutely delighted" by the company's announcement, which appeared to catch most people by surprise.
In a statement, Fritz Henderson, president and chief executive of General Motors, said the decision to keep Vauxhall followed a more benign business environment in Europe and GM's improved financial health.
He said: "From the outset, our goal has been to secure the best long-term solution for our customers, employees, suppliers and dealers, which is reflected in the decision reached today."
Retaining the brand was "the most stable and least costly approach for securing Opel/Vauxhall's long-term future".
Restructuring costs are expected to run to around 3m euros (£2.7m) - significantly lower than the bids submitted, GM said.
