General Motors board recommends selling Opel to Magna-led group

General Motors Co.'s board has decided to support selling a majority stake in Opel to a group led by Canadian auto parts giant Magna.

The move caps weeks of high-stakes maneuvering on both sides of the Atlantic that saw nationalism, labor issues and--perhaps most critical to GM, the use of its technology--all come into play.

Magna and Russian lender Sberbank will get a 55 percent interest in Opel, the linchpin of GM's European operations for 80 years, as well as its British sister brand Vauxhall. Employees will get 10 percent of the company.

The agreement could be signed in the next few weeks and close in a few months, GM said. Issues with unions and financing still must be finalized.

GM says the deal keeps Opel as part of its product development portfolio. Opel platforms have been used to underpin a number of GM's crucial cars sold in the United States, including the Buick LaCrosse and the upcoming Chevrolet Cruze.

“GM will continue to closely collaborate with Opel and Vauxhall to develop and produce more great cars,” GM CEO Fritz Henderson said in a statement.

GM originally planned to sell Opel to Magna, but then hedged after emerging quickly from bankruptcy. German political leaders have openly supported Magna's bid in what they said was an effort to save the jobs of the 25,000 Opel workers in that country.

By Greg Migliore