Thursday, September 10, 2009

Opel sold off, GM now just a shell of what it was

Opel cars was sold off to a company called Magna by GM. It's one of the deals that have left GM just a shell of what it was before all the economic and gasoline price rise ruined the car and banking markets starting nearly 18 months ago.

Magna is one of the biggest manufacturers of auto parts in the world. The deal's been in the works for a couple months and now it seems like it is going through. GM thought about holding on to Opel, but with the US Government now a 'partner' of GM, it was plain to see that the US interests wanted it sold off. The US advanced GM $50 Billion dollars, and that is a lot of money. Probably enough money to buy a couple cars each for every driving man or women in America. Where did all of this money go?

There was a 'board' of 13 members appointed to sell the stake in Opel. It has been reported that nearly no one on the board had any experience in cars or the overseas operations of Opel. Most of the board members were appointed by the Obama administration.

No comments: