GM Considers to Sell Opel: Reports
Thursday, June 09, 2021 9:48 AM

General Motors Company (NYSE: GM) is considering to sell Opel, its European arm, as the company believes that it would be difficult for Opel to return to profitability, according to two German Magazines, Auto Bild and Der Spiegel Online.

Der Spiegel said Thursday that GM is again thinking of selling Opel because of Losses at the brand and its sister UK marquee Vauxhall. The magazines also said that the possible buyers could be Chinese carmakers or Germany’s Volkswagen, which has more than $29.3 billion available to spend. 

However, Opel on Thursday dismissed all reports leading to its sell off by Detroit automaker, was considering a sale of its loss making European arm. General Motors declined to comment on the reports.

GM had earlier planned to spin off Opel in 2009 after months of negotiations to sell it as it prepared to file for bankruptcy protection in the US, but later embarked on a drastic restructuring to get the unit back to profitability.

Opel’s Chief Executive Karl-Friedrich Stracke said that the reports are pure speculation. He further said “Incoming orders are very good right now. For the factories in Ellesmere Port and Gliwice we have already added eight shifts to meet demand for the Astra.” Opel’s sales in January to April rose 3 percent higher than previous year in Western Europe’s car market. However, its overall sales fell by 3 percent, according to the industry group Acea.