Shares of Magna International Inc were up more than 12 percent on Friday, a day after it posted a surprise quarterly profit and said it would focus on its core auto-parts business after the collapse of its deal to buy a stake in General Motors Co's Opel unit.
The head of General Motors' European business, Carl-Peter Forster, is leaving the company following the surprise decision by GM's board to block the sale of Opel, two sources close to the situation told Reuters.
U.S. carmaker General Motors' decision to keep its European unit Opel will benefit European taxpayers, especially in Britain, Germany and Spain, British Business Secretary Peter Mandelson said on Thursday.
Russia accused General Motors of showing the United States' scorn of business with Europe by abandoning its sale of Opel, whose German workers went on strike on Thursday.
General Motors Co on Thursday said it was readying a plan to restructure Opel and could pay off debt due this month as German workers went on strike to protest the automakers decision to keep the European unit.
GM cited improving business conditions and the strategic importance of Opel, its European backbone, which also provides technology the group uses around the world.
The surprise decision by General Motors Co to drop a plan supported by Chief Executive Fritz Henderson to sell the company's Opel unit has raised new questions about the standing of the veteran GM insider after just six months on the job.
General Motors Co is confident that it can find the financing to keep and restructure its European Opel unit, Chief Executive Fritz Henderson said on Thursday.
General Motors' Europe head Carl-Peter Forster expects massive cuts at Opel after GM decided to hold on to the European carmaker, he was quoted saying in a German newspaper.
General Motors Co directors narrowly opted to retain Opel instead of selling the European unit to a group led by Canada's Magna International because they believed losing it could have left a significant gap in its operations, a senior GM executive said.
The mood in the global automotive industry has shifted to cautious optimism, marked by the unveiling on Wednesday of Chrysler's turnaround plan and General Motors' plan to keep its Opel unit.
General Motors' decision to keep its European unit Opel is embarrassing for German Chancellor Angela Merkel, who had lobbied for a sale, but the U.S. group's U-turn deals no lasting blow to her new government.
The abruptly scrapped sale of GM's Opel is not the first example of a deal born of the financial crisis being undone by the economic recovery, and probably won't be the last.
German Chancellor Angela Merkel agreed with Opel labour leader Klaus Franz on Wednesday that General Motors must present a plan for the European carmaker which focuses on job security, a government spokeswoman said.
The White House turned aside questions on Wednesday about the reason that General Motors decided not to sell Opel, saying that the auto company makes its own business decisions.
Britain's Unite union on Wednesday welcomed the decision by General Motors not to sell its European Vauxhall unit, saying it was a far better deal and that it expected the government to offer financial support.
General Motors' move to scrap the sale of its Opel unit and raised forecasts from Nissan Motor Co lifted confidence in the global auto industry's recovery on Wednesday.
The global meltdown and resulting implosion in vehicle sales over the past year have pressured everyone in the automotive sector, creating opportunities for some players while leaving others subject to bankruptcy, consolidation or concessions.
German and Russian leaders seethed and unions tore up a deal to cut costs in protest at General Motors' completely unacceptable decision to keep Opel, its European unit, after months of talks.
German politicians seethed and unions tore up a deal to cut costs in protest at General Motors' completely unacceptable decision not to sell Opel, its European unit, after months of painstaking talks.
Delphi, the auto-parts maker that emerged from a four-year bankruptcy in October, is forming a new board of directors and will name retired Dupont Chief Executive John Krol as its chairman, the Wall Street Journal said.
General Motors' decision to keep its European arm Opel after months of negotiations to sell it triggered anger and dismay in Germany, which had led the talks and was putting up much of the cash.
