"GM looks at plan to keep European arm"
THE saga over the future of car maker Vauxhall took a fresh twist today amid reports that beleaguered parent company General Motors may look to retain ownership.
GM, the debt-ridden US auto giant was last week expected to select one of two parties as preferred bidder for its European business, which is made up of Opel and Vauxhall.
No decision was reached and reports today said General Motors is looking at a $4.3bn financing plan that would allow it to keep control of its European operations.
GM may seek to raise the funding from the governments of the US and European nations, including Britain.
Fritz Henderson, GM chief executive, is thought to be readying the proposal for the company’s next board meeting early next month.
Experts believe that the General Motors which has seven new members, may be less keen to sell the European operations because the company was now in better financial shape.
The US Government has a 60.8% stake in GM after the carmaker’s bankruptcy and bailout this year.
Vauxhall has nearly 5,000 staff at its factories in Ellesmere Port and Luton.
The two bidders are Canadian group Magna, which is favoured by the German government, and a Belgian finance group RHJ International, which trade unions in this country say would lead to fewer job losses.
