General Motors may sell its Saab and Opel stake

General Motors may sell its stake in Opel and could also abandon Swedish brand Saab in efforts to cut costs and increase cash to avoid bankruptcy. GM’s European division issued a statement Wednesday saying that they are working to reduce costs without having to close any plants. The group said that it is looking for $1.2 billion in labor cost savings.

GM Europe President Carl-Peter Forster said that executives are also considering third-party alliances and equity stakes.

In its long-term viability plan submitted to the U.S. Treasury on Tuesday, GM said that it will cut 47,000 jobs worldwide, 26,000 of those will be from foreign operations. In the latest figures, GM said that its European division lost $1 billion in the third quarter.

In other news, Automotive News Europe reports that GM has no plans to shut its Opel factories in Germany. It said that it expects Saab and Opel to post profit in 2011.

Source: Detroit News