Vauxhall’s future secured
May 30th, 2009 by Richard Aucock
VAUXHALL’S future has reportedly been secured, as a deal was reached to save parent firm GM Europe.
Canadian parts giant Magna will buy GM Europe, owners of Vauxhall and Opel, from pressured US parent GM
Germany’s government will provide loans of £1.3 billion, and Magna will invest over £430 million.
The car parts maker is backed by a big Russian bank and – intriguingly – van maker GAZ.
Which, until recently, owned Birmingham vanmaker LDV.
The BBC says the deal was announced just after 2am German time.
‘A solution has been found to keep Opel running,’ revealed minister Peer Steinbrueck. This followed hours of talks.
GM Europe is now separated and protected from GM’s US division, which is expected to announce Chapter 11 bankruptcy protection on Monday.
The US side will still retain 35 percent of the company, though. The firm’s workers will also own 10 percent.
Yesterday, business secretary Lord Mandelson told Sky News Magna had given him ‘categorical’ assurances that production of Vauxhall cars would continue in the UK.
Car Dealer Magazine will bring you news of the UK reaction to the deal throughout the day!
By Richard Aucock
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