Opel CEO Says Reports Of Sale Are "Pure Speculation"
June 09 2011 - 06:38AM
Dow Jones News
The Chief Executive of General Motors Co.'s (GM) German unit
Adam Opel AG Thursday told the company's employees that renewed
speculation about a possible sale was "pure speculation" and the
company was continuing to make good its turnaround.
German trade magazine Auto Bild and weekly Der Spiegel reported
Thursday that GM's management was increasingly doubtful about
Opel's economic viability, and Auto Bild said GM could instead
focus on its Chevrolet brand in an effort to return its loss-making
European operations to profitability.
However, in an internal letter sent to staff that has been seen
by Dow Jones Newswires, Karl-Friedrich Stracke said GM backed the
view that reports of a sale were speculative.
"I'm asking myself why this issue is surfacing again now that
Opel is back on the route to success," Stracke wrote. "We proved
that the company is on a very good way and therefore represents a
great value for GM."
GM planned to sell Opel to a consortium led by Canadian
auto-parts maker Magna International Inc. (MGA) in 2009 as part of
a major reshuffle of the whole company, but skipped the sale at the
eleventh hour.
-By Nico Schmidt and Christoph Rauwald, Dow Jones Newswires; +49
69 29 725 512; christoph.rauwald@dowjones.com
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