GM officially bankrupt and Opel practically in the hands of Magna

As we discussed a few days ago, General Motors officially filed for bankruptcy today, just before the stock market opened. The company reported debts of 172 billion dollars, against 82 billion dollars in assets.

The intention of the brand and the American government is to try to revive the company by separating the bad assets from the good ones and creating a new, profitable company. This process is estimated to take about three months, by which time a new company will be created, split as follows: the American government at 60% and the Canadian government at 12%. Since the American executive will inject 30.1 billion dollars into the new company and the Canadian government another 9.5 billion dollars.

On the other hand, GM has reached an agreement with Magna for the purchase of Opel and its European division, which would include Vauxhall, and the future of Saturn is still to be decided, since Magna wants to manufacture Opel vehicles in Canada. For now, what we do know is the agreement in principle between General Motors and Magna, and it has the approval of the German government.

But according to the BBC, there will be layoffs at the Opel factories, and 10% of the workforce could end up on the street, which translates to 2,500 workers. As for control of Opel, General Motors will keep 35% of Opel, while the workers will own 10% of the manufacturer. Over the coming days we will bring you all the data on the brands included in the operation and the remaining details.

Source | Autoblog en español