The Wall Street Journal reported that General Motors Co. agreed to sell a majority stake in its European operations to Magna International and two Russian partners. It seems that GM said it will not be paid anything for the stake in its Opel and Vauxhall businesses. Magna has agreed to invest €500 million ($726 million) and the German government pledged to finance the plan and help fund Opel with €4.5 billion in loans.
Opel and Vauxhall have been losing money for years, despite repeated restructuring efforts. Under the Opel/Vauxhall deal, Magna and two Russian partners, automaker OAO GAZ Group and state-controlled OAO Sberbank, will buy a 55% stake. Opel employees will hold 10%, while GM would retain the remaining 35%. (SB)
