GM readies Opel plan, workers strike

Story by Superior Auto Institute /

General Motors CO decided in October that they wanted to sell their European Opel Unite to Magna International out of Canada. However, now GM has decided to keep Opel instead.
General Motors has had a hard time during this recession; they claimed $50 billion of government aid and lost more than $8 billion. GM has decided to offer only four brands, Buick. Cadillac, Chevrolet and GMC, while others such as the Hummer, PT Cruiser, Saab, Saturn and Dodge viper will all be discontinued by the end of this year.
General Motors decided to keep Opel which ultimately left the German Government feeling a little on the betrayed side. Even with GM believing that the company retained by them was the right move; workers did not believe it was and many have went on strike. Thousands of workers felt betrayed in their interest of the company when Opel was blocked for sale. Even the head of General Motor’s European business, Carl-Peter Forester stepped down when the surprise decision to retain the company had been made.
With GM’s decision to keep Opel came, their need for assistance appeared to which was turned toward the European Government, their belief was that they could keep GM running and Opel would be a factor in that. However workers went on strike presenting another problem for GM.
A lobbyist for the Magna led takeover of Opel named Merkel showed her concern about GM’s decision by getting in touch with President Obama who talked with her on the telephone on Wednesday. President Obama reported that he was not a part of the GM’s surprise decision to keep Opel which has infuriated the German Government so badly.
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