General Motors dismisses reports of deal to sell Europe's Opel

09 June 2011 19:02  [Source: ICIS news]

LONDON (ICIS)--General Motors (GM) and its European unit, Opel, on Thursday dismissed as speculation reports saying that it planned to sell Opel to a Chinese firm.

A number of German media, citing works council and other sources, said GM may plan to divest the loss-making Opel business after all.  

In 2009, GM cancelled plans to sell Opel, which includes the UK Vauxhall brand, to a consortium of Canada-based car parts giant Magna and a Russian group.

The reports by Germany’s state media group ARD, news magazine Spiegel and others said GM, which recovered after its 2009 bankruptcy filing and government bail-out, is no longer willing to tolerate Opel’s losses.

The reports come as prospects for car sales in Europe seem relatively poor, compared with the long-term growth outlook in Asia, analysts said.

The automotive sector is one of the chemical industry's key end-use markets. The American Chemistry Council (ACC) estimates that a typical automobile contains an average of $2,700 (€1,863) worth of chemicals.

($1 = €0.69)

Read Paul Hodges’ Chemicals and the Economy Blog

By: Stefan Baumgarten
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