GM Won’t “Cut and Run” at Opel

General Motors Co. won't sell or abandon its Opel business, CEO Dan Akerson reassures staffers at the unit's headquarters in Russelsheim, Germany.

Akerson insists that GM needs "a strong design, engineering, manufacturing and sales presence" in Europe. He declares that people who say the company should "cut and run" do not see how important Opel is to GM's success.

Analysts and investors have been urging the company to unload Opel, which has lost more than $15 billion since 1999. GM predicts the unit will post a $3 billion deficit for 2012-2013 and doesn't expect it to break even until mid-decade.

Opel lacks economies of scale in "critical areas," Akerson notes. He says GM's alliance with PSA Peugeot Citroen aims to achieve those economies. The partners plan to share purchasing, logistics and product development.