GM CEO Fritz Henderson (Image courtsey of AP)
Fritz Henderson, CEO of General Motors, announced earlier today that the sale of European GM divisions Opel and Vauxhall to Canadian parts supplier Magna International Inc. will go ahead as planned, despite labor union protests.
The European labor union currently working for GM claims that job losses would be severe and potentially detrimental to the economy, but Henderson has tried to explain those worries away.
The current plan calls for Magna to buy a 65 percent share of the ownership of Opel and Vauxhall, leaving GM with the remaining 35 percent. Henderson explained, "We're 35 percent of the business and we want it to succeed."
The announcement came during Henderson's trip to Shanghai, China, where it is suspected he will ask the Chinese government to approve the sale of Hummer to Sichuan Tengzhong Heavy Industrial Machinery Corporation.
With the sale of Opel and Vauxhall, General Motors has significantly narrowed the remaining brands, having sold the Saab nameplate to Koenigsegg, Hummer to Tengzhong Heavy Industrial Machinery Corp., and scrapping the Saturn and Pontiac brands entirely.
General Motors now consists of Buick, GMC, Cadillac and Chevrolet in the United States, with the Holden brand in Australia, Daewoo in South Korea and Wuling in China.
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