Markets

General Motors Could Sell Majority Stake in Opel

By Jim Henry

Updated on: May 11, 2009 / 1:03 PM EDT / MoneyWatch

General Motors President and CEO Fritz Henderson confirmed today GM would be willing to sell a majority stake in its German-based Opel subsidiary, as GM sheds costs by selling or closing brands and divisions.

"We certainly indicated a willingness to go into a minority position," Henderson said in a press conference today.

Henderson also confirmed:

Hummer has two potential buyers, out of three bids originally. GM hopes to announce a deal getting rid of Hummer by the end of May.
Saturn may try to stay in business by sourcing products from other automakers. That's OK with GM as long as it doesn't harm GM, and as long as it doesn't cost GM any money, Henderson said.
Saab is basically trying to sell itself in Sweden, while GM is keeping Saab at arm's length.
Pontiac will "wind down" and go out of business, Henderson said.

Fiat is widely reported to be interested in a large stake in Opel, and potentially GM's Latin American Operations.

Henderson avoided discussing the structure of a potential deal, or even to confirm whether Fiat is the most likely partner. Separately, the Fiat board of directors confirmed earlier this month that Fiat is exploring a merger between Fiat and GM Europe, which primarily means Opel.

In the same way that Fiat's proposed deal with Chrysler is contingent on federal aid from the U.S. government, Fiat's proposed deal with GM Europe hinges on aid for Opel from the German government.

Henderson reiterated today that Opel needs government help. "Germany hasn't indicated an interest in running our business, but we do need support in terms of funding," he said. With German government aid would come clout in GM's choice of a partner. Henderson said, "Any partner we pick is going to be suitable for them."

MoneyWatch Poll: How Has the Financial Crisis Affected You?