GM almost succeed in retaining Opel brand

Finally sources told Reuters that General Motors Co is considering a plan to raise funding to keep Opel as an alternative to selling the unit to Magna International.

GM's new board of directors rebuffed Mr. Henderson's recommendation to sell Opel/Vauxhall to a consortium of Canadian auto supplier Magna International Inc. and a Russian bank and car maker last Friday, and executives at GM are beginning to consider other options, including raising more than $4 billion in a bid to keep Opel.

Because GM is barred from using funding from the U.S. government for its international operations, one of the options could include raising money by selling or mortgaging the automaker's assets in China, a claim shortly denied by GM China, which told Gasgoo that it is merely speculation because GM's China unit is one of its most profitable business in the world and its not sensible for GM to sell it.

Just as I said maybe two weeks ago, GM never really intends to sell Opel. It was politically expedient to show that GM will cut on the brands, etc.. a few months ago. Now, Opel shows successes, it's a strongest engineering brand in GM portfolio..

What's more, much of GM's development work is done at Opel and selling it would create future problems. The US automaker doesn’t seem to have a full engineering staff in the US - many models come from Opel or the former Daewoo. The only real development done in the US is for trucks or more expensive models.

If GM gives away Opel it becomes really a regional company with some business in China.