Opel Sells Assets to GM to Win Funding image

Opel decided to sell 6 European facilities to GM in exchange for winning extended funding.

According to Frankfurter Allgemeine Zeitung, GM’s loss-making Opel division decided to sell a development center in Turin, Italy, an engine plant in Hungary, a factory in Gliwice, Poland, and several other assets to its US parent in exchange for winning extended funding.

According to the newspaper, on December 13th, Opel’s supervisory board approved the sale of assets to GM, saying that this deal will offer the automaker funding through the end of 2016 and the possibility to pay back GM a loan by the end of 2014.

Two months ago Fiat said it considers buying Opel, considered a burden for the US automaker. Although continuously under pressure to sell the company, GM announced the automaker is not for sale and that it plans to relaunch the brand. Although Fiat has been hit by great loses in Europe, its profits from the US market, where it has Chrysler, bring huge cash pile that could be used for new acquisitions, such as Opel.

“Our protracted losses have even prompted some analysts to argue that we should sell Opel or simply close up shop and leave car sales in the region to others – I’m not about to do that,” said Dan Akerson.