GM pulls out of Vauxhall sale

In a surprise u-turn, Fritz Henderson, General Motors president and CEO, has announced that the car maker will not sell its Opel/Vauxhall brands.

The news comes just two months after the GM Board recommended the sale of a majority stake in Opel/Vauxhall to Russian firm Magna International/Sberbank.

GM said the decision to retain its European operations was made against the backdrop of “an improving business environment”.

The company now plans to begin an estimated € 3 billion restructure of Opel/Vauxhall “in earnest”.

“While strained, the business environment in Europe has improved,” said Fritz Henderson.

“At the same time, GM’s overall financial health and stability have improved significantly, giving us confidence that the European business can be successfully restructured.”

In a statement this morning, Business Secretary Lord Mandelson said he was “keen for very early discussions with GM over their plans for the business and how they will affect British plants and workers".

He added: "I have always said that if the right long term sustainable solution is identified, then the Government would be willing to support this.”