On November 4, 2009
GM’s U-Turn: Gutsy or Myopic?
GM’s decision to hang onto Vauxhall has naturally made the marque’s 5,500 UK workers happy. But has GM made the right decision? Tony Woodley, joint leader of Unite (the union), said there was logic in selling off the two marques and GM’s CEO, Fritz Hendrseon, said GM’s health had improved since the initial negotiations, giving the business the confidence to restructure, rather than sell off its European business. Breaking up GM’s business and selling its Opel operations to Russian-financed Canadian car-parts company Magna might well have cannibalised GM’s own car sales. By retaining Opel and Vauxhall, GM gets to keep a toe-hold in Europe, and the Continent’s emerging markets, an important source of new business as UK car sales rely…
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