GM Vice Chairman Confirms That Opel Unit Isn't for Sale

By Christoph Rauwald

FRANKFURT--General Motors Co. (GM) reiterated Friday that the U.S. auto maker's European Opel brand isn't for sale, dismissing an Italian newspaper report published earlier Friday suggesting that talks over a sale to rival Fiat SpA (F.MI) could be revived.

"Opel is a fully integrated part of GM's global footprint and vital for GM's future success in Europe," GM vice chairman and Opel supervisory board chairman Steve Girsky said in an emailed statement.

Fiat launched a bid for Opel in 2009 after GM put the unit up for sale as part of a wide-ranging restructuring. Fiat's bid sparked fierce opposition from German labor unions and politicians due to concerns about large-scale job cuts as both Fiat and Opel suffer from excess production capacity in Europe.

GM was close to selling Opel to car-parts maker Magna International Inc. (MGA) at the time, but shot down the deal at the 11th hour after its board decided to keep the unit.

The Detroit auto maker reshuffled Opel's management and is preparing a comprehensive turnaround plan for the division, including an alliance with French peer PSA Peugeot-Citroen SA (UG.FR) to share costs in the fields of purchasing and development.

"The GM-PSA alliance is fully on track," Mr. Girsky said.

Write to Christoph Rauwald at [e-mail]

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