European Car Industry: GM Pulling Most Of Chevrolet Out Of Europe, But Leaving Corvette - by Maggie McGrath

In an effort to strengthen its European operations, automaker General Motors has decided to withdraw one of its signature brands from the region, the company announced Thursday morning.

Citing Europe’s “difficult economic situation,” GM said that it is largely pulling Chevrolet from Western and Eastern Europe, a change that will take effect beginning in 2016. While Chevrolet, which GM called the fourth-largest global automotive brand, will no longer have a “mainstream presence” in Europe, GM said it will still offer select “iconic” Chevrolet vehicles — like the Corvette — throughout Europe. The Chevrolet brand will also still have a “broad presence” in Russia and the Commonwealth of Independent States, the automaker said.

GM said that the move will help its Opel and Vauxhall brands and reduce the complexity and competition associated with having both Opel and Chevrolet in Europe, because the brands aren’t as clearly defined as they are in Russia and the CIS.

According to GM’s most recent earnings report, European operations brought in a negative $214 million in the third quarter of 2013. The Opel/Vauxhall segment accounted for 64% of GM’s European sales, with 249,000 Opel/Vauxhall vehicles sold in the three months ending September 30. Meanwhile, just 138,000 Chevrolet vehicles were sold in Europe during that same period, a figure that accounts for 35.6% of GM’s third quarter European sales.

Read more:: GM Pulling Most Of Chevrolet Out Of Europe, But Leaving Corvette - Forbes

BBC NEWS: Germany picks Magna to save Opel

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Germany picks Magna to save Opel

Germany has agreed a deal with Magna International, a Canadian car parts maker, to take over Opel, part of the European wing of US carmaker GM. German Finance Minister Peer Steinbrueck told journalists outside the chancellery shortly after 0200 local time on Saturday morning that a deal had been agreed. The German government is expected to provide an immediate loan facility of 1.5bn euros ($2.1bn, £1.3bn). The Magna deal should protect Opel if GM files for bankruptcy protection in the US on Monday, as is expected. The Canadian company has said it will put more than 500m euros ($700m; £435m) into Opel, which employs more than 25,000 people in Germany.Before the announcement of the deal, Magna said it planned to cut 2,500 jobs in Germany, about 10% of Opel's workforce in that country. Italy's Fiat, a former potential bidder, had said it would cut 10,000 jobs. GM operations in Europe will now be placed under the care of a trustee to shield them from the parent company's filing for bankruptcy protection in the US. By doing this the Germans have ringfenced Opel from the mother company and this has been achieved.

On Friday, a court in Sweden granted Saab, GM's other European business, an extension to its protection from creditors. The Swedish car maker first sought protection in February. It now has until 20 August to line up a new owner and to restructure its business. Saab is being sold off by GM separately.

The Washington Post: U.S. to Steer GM Toward Bankruptcy - by David Cho, Peter Whoriskey and Kendra Marr

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U.S. to Steer GM Toward Bankruptcy - by David Cho, Peter Whoriskey and Kendra Marr

The Obama administration is preparing to send General Motors into bankruptcy as early as the end of next week under a plan that would give the automaker tens of billions of dollars more in public financing as the company seeks to shrink and reemerge as a global competitor, sources familiar with the discussions said.

The shifts into and out of bankruptcy are landmarks in the Obama administration's attempt to broker a historic restructuring of the American auto industry in the space of months. The legal tactic is viewed by some as the best means of reviving the companies. But the speed of the government-led transformation has triggered complaints that the rights of investors and dealers are being trampled. Meanwhile, fears that a bankruptcy could lead to cascading business failures are spreading throughout GM's vast chain of suppliers.

FT.com - GM prepares to dispose of stake in European unit for nothing - by John Reed and Daniel Schafer

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GM prepares to dispose of stake in European unit for nothing - by John Reed and Daniel Schafer

General Motors is prepared to part with a controlling stake in Opel/Vauxhall for nothing but a pledge to invest directly in a new company formed from its European operations, according to two people familiar with its plans. GM, which might file for bankruptcy in the US and is running short of cash in Europe, was talking to more than six financial and industrial groups about acquiring a stake in its regional arm, Fritz Henderson, the carmaker's chief executive, said last week. It wants potential buyers to give a firm indication of their interest over the next two to three weeks. According to a person familiar with GM's thinking, an investor will be asked to pay at least €500m ($652m) in equity but the carmaker will realise no financial gain as the money will be injected directly into Opel/ Vauxhall.