Report

Report: Opel Brand Is Not For Sale

Some reports have come been coming out over the last couple of days regarding the future of GM's European German-based brand, Opel. There were supposedly "top-level" talks regarding a possible sale of Opel to Volkswagen. The idea was for another German company, as opposed to a Chinese company, to acquire Opel in order to preserve the local supplier and engineering base.

Obviously, this made Opel CEO Karl-Friedrich Stracke quite nervous, considering his division has been losing money for some time. GM was previously interested in selling Opel back in 2009 to Magna International, but changed their minds at the last minute when they realized how important Opel was to their global operations. Fortunately, after GM instituted some cost-cutting measures, Opel is expected to break even this year. It could even turn a profit by the end of 2012 due partly to new products and expanded sales in the Middle East, China, and Chile.

So for now, GM is adamant on keeping Opel, as long as their numbers remain promising and doesn't hurt the automaker in their continued post-bankruptcy recovery.

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