General Motors (GM) has cancelled plans to sell a majority stake in its European car business Opel, including its UK brand Vauxhall. The US giant said in a statement that its board had made the decision because of "an improving business environment for GM over the past few months".
GM had agreed to sell Opel and Vauxhall to Canadian car parts firm Magna. It added that it would now be seeking aid for Opel from the German government and other European states. GM added that it had also come to its decision because of the importance of Opel and Vauxhall to its global strategy. It said it would now "initiate a restructuring of its European operations in earnest".
Magna co-chief executive officer Siegfried Wolf said: "We understand... it was in GM's best interests to retain Opel. We will continue to support Opel and GM in the challenges ahead," he added.
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BBC NEWS | Business | General Motors cancels Opel sale