Q&A-What does GM's move mean for Opel?
Nov 4 (Reuters) - General Motors [GM.UL] has abandoned the painstakingly negotiated deal to sell European arm Opel to a group led by auto supplier Magna (MGa.TO: Quote, Profile, Research)(MAN.AX: Quote, Profile, Research), raising the ire of German politicians and labour leaders. [ID:nNO3522653] Here are some questions and answers on Opel's future:
WHY HAS GM DECIDED TO KEEP OPEL?
GM said it wanted to keep Opel because both the business environment and its own financial health and stability had improved. It also said its restructuring plan would cost less than the plans proposed by Canada's Magna and other bidders.
WHAT IS RESTRUCTURING GOING TO COST?
GM expects restructuring to cost 3 billion euros ($4.4 billion), likely for job cuts and plant closures. In September, a financial adviser had told the board that keeping Opel could require additional cash of up to $6.1 billion. [ID:nN08292095] GM has not yet detailed its restructuring plan, which sees cutting fixed costs at Opel by 30 percent.
HOW MUCH TIME DOES GM HAVE TO RESTRUCTURE OPEL? Continued...
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