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GM to Sell Opel to Canada's Magna

Detroit firm also recommends Vauxhall go to Magna

By Matt Cantor,  Newser Staff

Posted Sep 10, 2009 9:30 AM CDT

(Newser) – After painfully drawn-out negotiations, General Motors’ board has agreed to sell its Opel unit to Canadian firm Magna International, maintaining a tie that will keep Opel a "a fully integrated part of GM's global product development organization," the company said. The German government, which earlier this year loaned Opel $2.1 billion, was pushing for the deal.

The board also recommended that its Vauxhall brand, based in the UK, go to Magna. GM is set to sell 55% of Opel to the Canadian company, with workers holding 10% and the Detroit firm hanging onto the remainder. Opel is important to GM because it has been the main source of engineering for the small and mid-sized cars, the Wall Street Journal reports, and is GM's biggest seller in Europe.

A Vauxhall dealership sign is seen in front of the General Motors plant  in Luton in England, Tuesday, May 5, 2009.
A Vauxhall dealership sign is seen in front of the General Motors plant in Luton in England, Tuesday, May 5, 2009.   (AP Photo/Kirsty Wigglesworth)
Workers enter the Opel car manufacturer plant in Bochum, western Germany, Thursday Sept. 10, 2009.
Workers enter the Opel car manufacturer plant in Bochum, western Germany, Thursday Sept. 10, 2009.   (AP Photo/Frank Augstein)
A German flag is seen in tatters flying from the aerial on a car in front of the Opel car manufacturer plant in Bochum, western Germany, Thursday, Sept. 10, 2009.
A German flag is seen in tatters flying from the aerial on a car in front of the Opel car manufacturer plant in Bochum, western Germany, Thursday, Sept. 10, 2009.   (AP Photo/Frank Augstein)
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