Wednesday, November 11, 2009

Germans Disappointed In GM

News that General Motors backed out of its deal with Magna International and Sberbank was greeted with bitter criticism in Germany.GM's sale of Opel/Vauxhall to the Canadian-Russian consortium had seemed to be a sure bet.In the end,the abandonment was a defeat for Chancellor Angela Merkel,who had pushed so hard for the protection of German workers.Magna had pledged to keep all four German Opel plants open,and GM had received a two billion dollar bridge loan from Germany.GM finally decided it had to maintain a presence in Europe-especially its access to the emerging Eastern Europe.One German worker observed that it was foreseeable that GM would keep Opel.He knew it.
Thousands of Opel workers staged protests at all of the Opel plants in Germany.They fear they will lose two of the four plants.The workers were carrying red and yellow union flags and beating drums.GM said they have nothing to fear.GM intends to adhere closely to the outlines of the Magna-Sberbank deal.Fritz Henderson,GM's CEO,is currently in Europe to mend fences.GM says it may use its liquidity to restructure Opel/Vauxhall.

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