BREAKING: GM board of directors decide to keep Opel

General Motors’ board of directors said today that it will keep Opel and restructure it, putting an end to plans to sell the brand to Magna International. GM said that it expects the restructuring of Opel to cost 3 billion euros ($4.42 billion USD), which it says lowers the costs associated with outside bids for the brand.

“Given an improving business environment for GM over the past few months, and the importance of Opel/Vauxhall to GM”s global strategy, the GM Board of Directors has decided to retain Opel and will initiate a restructuring of its European operations in earnest,” GM said in a statement.

“We understand the complexity and length of this issue has been draining for all involved,” CEO Fritz Henderson said. “However, from the outset, our goal has been to secure the best long-term solution for our customers, employee, suppliers, and dealers, which is reflected in the decision reached today. This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall’s long-term future.”

Magna had no comment on the GM decision.

– By: Omar Rana