Berlin inter alia requested the loan of EUR 1

The output of crisis has convinced General Motors to renounce the sale of Opel to the tandem Magna-Sberbank. The German Chancellor, Angela Merkel, had just to ride in his plane to return to Washington when the release of GM fell. Visibly heartened by fragile signs of recovery in the United States and Europe, GM finally announced Tuesday evening, burying the assignment of Opel and its British sister Vauxhall company relying on "the improvement of the environment" and the strategic importance of its subsidiary.

Despite the immediate wrath of the German authorities, GM hopes to still get some 3 billion euros of aid from European Governments (including 2 billion of Berlin) to complete the restructuring of its subsidiary. "We understand the complexity and the length of the process for all parties concerned." "But since the beginning, our goal has been to provide the best solution to long term for our customers, employees, suppliers and dealers, which translates the resulting decision Tuesday", attempted to explain the GM's CEO, Fritz Henderson, who argued yet to surrender a few days earlier.

Filing of balance sheet risk

The Detroit Group suggests that the cost of an Opel restructuring within the fold of GM will be lower than expected in a takeover by Magna. Fritz Henderson will soon present a new restructuring plan to the European Governments concerned.

Since the beginning, the procrastination of the Council of GM on Opel sale not were not bode well for the Canadian Magna. The recomposition of the Council by the administration Obama, in the wake of his temporary release under Chapter 11, appears to have played a decisive role in this change of foot.

To most analysts, the sale of Opel risked undermining the efforts of GM seeking to expand its range of small cars, a segment considered the main engine of growth of the automobile market in the next few years. In addition, GM had never hidden its fears about the risk that the agreement between Magna and Russian Sberbank to give competitors access to its patents. While stressing that the group will seek to obtain the bulk of the financing of its plan of 30 reduction of costs through loans guaranteed by Governments, GM has not hidden in the event of failure or absence of an agreement with the unions, Opel could be still leads to the filing of balance.

But the great German Confederation IG Metall is not near bend. On the contrary, its officials immediately cancelled the Tuesday agreement involving wage concessions to a takeover by Magna. "We did not accompany the way back to GM", said Klaus Franz, Chairman of the Committee. Considers that three sites, Bochum, Kaiserslautern and Antwerp, are extremely "in danger".

Protest actions

The Union has appealed to the event today in Germany, where half of the 55,000 employees of the American manufacturer in Europe. Protest actions should extend tomorrow to the rest of Europe. They are designed to "demonstrate to the Board of Directors of GM what we think of its decision", prevents Armin Schild, representative of IG Metall in the Opel Supervisory Board. And Berthold Huber, the pattern of the Union, adding: "A GM Opel placed first in difficulty due to management errors." It is difficult to see how the group could emerge a solid solution.

On the political side, the reactions were not more lenient (read below). Berlin inter alia requested the loan of EUR 1.5 billion, as of 30 November, which was part of the assistance of 4.5 billion promised to Magna. Remains whether the German State will be ready to provide financial assistance to GM in such a climate.