Car insurance: General Motors stage dramatic U-turn

Thursday, 05 November 2009

General Motors has staged a dramatic U-turn by keeping its European Opel and Vauxhall subsidiaries, car insurance customers may be interested to know.

Union leaders have hailed the decision as a "fantastic decision" after GM chose to snub Magna International and the German government, which had agreed a deal to purchase the companies.

The decision is likely to safeguard the future of its Ellesmere Port facility, where GM employs about 2,000 workers, however a question mark still hangs over the future of the company’s van plant at Luton, which employs around 1,500 workers.

Tony Woodley, secretary general of Unite, called the news an "incredible turnaround" by GM.

"There's no logic in breaking up the company," he said. "It is the best decision for Britain and our plants."

In the US General Motors has reported its first rise in monthly car sales for almost two years.

The firm's domestic sales rose 4.7 per cent in October from a year earlier, a sign that the American car industry seems to be slowly recovering.

By Rick Malone

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