GM confirms to keep Opel, scraps Magna deal

General Motors' board voted on Tuesday to hold on to its Opel division rather than sell a majority stake to Canada-based Magna, ending months of uncertainty and dashing the hopes of German officials.

General Motors' board voted on Tuesday to hold on to its Opel division rather than sell a majority stake to Canada-based Magna, ending months of uncertainty and dashing the hopes of German officials.

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"Given an improving business environment for GM over the past few months, and the importance of Opel-Vauxhall to GM's global strategy, the GM board of directors has decided to retain Opel and will initiate a restructuring of its European operations in earnest," GM said in a statement.