Opel sell-off?
June 9, 2011
General Motors (GM) is once again mulling the sale of struggling German carmaker Opel and its British associate brand Vauxhall, according to German media reports.
Potential buyers include Chinese investors and Europe's largest carmaker, Volkswagen, the German magazine Spiegel and the specialist publication Auto Bild reported online.
However, an Opel spokesman dismissed the reports as "pure speculation."
Opel chairman Klaus Franz has warned that such rumors could damage Opel's image "enormously."
The company's works council has called on General Motors' US headquarters to deny the rumors.
Not the first time
GM tried to sell Opel in 2009, when the Detroit-based corporation was facing bankruptcy.
The US auto giant was poised to offload the German company to a Canadian-Russian consortium led by auto parts maker Magna International. But GM then decided to hold onto the unit and turn it around without aid from the German government.
In June 2010, GM unveiled a restructuring plan for Opel and Vauxhall that included the elimination of 8,000 jobs.
Europe is the only remaining loss-making region for GM. But Opel has gained ground in recent months thanks to growing global demand for cars.
Author: John Blau (dpa, AFP)
Editor: Sam Edmonds