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New GM supports
restructuring of
Vauxhall/Opel
- GM restructuring plan involves
lower investment compared to investor proposals
- Discussions with stakeholders on
restructuring to begin in earnest
DETROIT - Given an improving
business environment for GM over the past few months and the
importance of Vauxhall/Opel to GM's global strategy, the GM
Board of Directors has decided to retain Vauxhall/Opel and
will initiate a restructuring of its European operations in
earnest.
"GM will soon present its
restructuring plan to Germany and other governments and hopes
for its favourable consideration," said Fritz Henderson,
president and CEO. "We understand the complexity and length of
this issue has been draining for all involved. However, from
the outset, our goal has been to secure the best long term
solution for our customers, employees, suppliers and dealers,
which is reflected in the decision reached today. This was
deemed to be the most stable and least costly approach for
securing Vauxhall/Opel's long-term future."
On a preliminary basis, the GM plan
entails total restructuring expenses of about €3 billion,
significantly lower than all bids submitted as part of the
investor solicitation. GM will work with all European labour
unions to develop a plan for meaningful contributions to
Vauxhall/Opel's restructuring. While Vauxhall/Opel continues
to outperform against its viability plan assumptions and
immediate liquidity is stable, time is of the
essence.
"While strained, the business
environment in Europe has improved." Henderson said. "At the
same time, GM's overall financial health and stability have
improved significantly over the past few months, giving us
confidence that the European business can be successfully
restructured. We are grateful for the hard work of the German
and other EU governments in navigating this difficult economic
period. We're also appreciative of the effort put forward by
Magna and its partners in Russia in trying to reach an
equitable agreement."
Henderson added that GM also hopes
to build on its already significant business in Russia and to
resume work directly with GAZ to contribute to both the
modernisation of its operations and the joint development of
the Russian vehicle market on a mutually attractive basis.
More details on the next steps in the restructuring will be
provided as the plans and developments
warrant. | 
