General Motors has reportedly issued yet another statement reaffirming its commitment to Opel. Reuters reports the following statement from GM Vice Chairman Stephen Girsky: “Opel is not for sale. GM fully stands behind Opel.” He goes on to emphasise the key role that Opel plays in GM’s global business: “Opel is a fully integrated part of GM’s global footprint and vital for GM’s future success in Europe.”
This latest statement of loyalty follows a report in Italian newspaper Il Sole-24 Ore, which claimed that Fiat would be keen to acquire Opel should GM’s alliance with PSA Peugeot Citroen fall through. Fiat Chief Executive Sergio Marchionne is reportedly preparing a proposal to acquire the struggling European operations, should GM decide to sell.
Fiat had previously expressed an interest in acquiring Opel in 2009 when GM had considered selling it the business. GM had come close to finalising a sale to Magna, but later changed its mind and decided to keep the business.
Opel is an undeniable financial drag on GM. Over the past 12 years, GM’s European operations have lost US$16bn. However, GM has repeatedly denied plans to sell. An analyst at Morgan Stanley recently recommended a sale of the business, much as Daimler sold off Chrysler following years of financial drain.
GM is now pinning its hopes for a European revival through a global alliance with PSA Peugeot Citroen, announced in February this year. The partners expect the alliance to result in savings of US$2bn a year within five years, split equally between them.
