General Motors has a ‘plan B’ ready should the EU block its planned sale of European unit Opel/Vauxhall, press reports said on Monday.
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“While the automaker continues to prefer a sale to Magna, GM executives are prepared to move to its Plan B if that deal should fall through,” the Wall Street Journal Europe said, citing sources familiar with the matter.
The backup plan calls for GM keeping control of Opel and implementing deeper restructuring actions than the proposed buyers, Magna International and Sberbank, plan, news agency AFP said, citing the WSJE.
If forced to act alone, GM would fund the restructuring, which includes far more drastic worker reductions, by soliciting government support or putting Opel into insolvency, the reports added.
