General Motors announced yesterday that the 13-member board has finalized the retention of the Opel brand and began to rebuild its European operations. General Motors President and CEO Han Desheng told the newspaper’s statement that all parties agreed that the decision is the most stable and cost-effective way to ensure the long-term development of the Opel/Vauxhall brand.

His statement clearly overturned the judgment three weeks ago. At the time of his visit to China, Han Desheng said that GM's sale of Opel was “very likely” to be finalized within that week. After the transaction was completed, GM only held a 35% stake in Opel. GM suddenly regrets that it may bear commercial risks. Germany, where Opel's four factories are located, has already threatened to repay it with 1.5 billion euros of bridge loans by the end of this month.

The Magna International, which was only close to the main entrance to the main Opel, said yesterday that it was clear that the decision of the GM board of directors was based on the best interests of General Motors and said that it would continue to support the development of Opel and GM.

Three factors make general purpose change

Why did GM suddenly repent after spending a lot of manpower and material resources?

First of all, the weakened GM has injected more than US$50 billion in U.S. authorities after the bankruptcy rebirth. In October, General Motors recorded its first year-on-year growth in 21 months.

Second, Opel's business has also improved. GM said yesterday that Opel's current market performance continues to outperform reconstruction expectations and it also has a stable cash flow. It is estimated that the initial funding for the brand's reconstruction plan will be approximately 3 billion euros, which is far below the bids submitted by all bidders. Amount.

Again, the sale of Opel under the auspices of Germany triggered a series of political controversies, so that GM is also on thin ice.

A local dealer said that due to media reports that caused the customer to have a lot of doubts, a wait-and-see attitude has affected sales, but the dealer is reluctant to disclose Opel’s share of sales declines. Yesterday, General Motors China President and General Manager Gan Wenwei said that the latest decision will not have any impact on the Opel brand's current business in China.