The Associated Press

Magna International Inc. co-chairman Siegfried Wolf addresses the media at the Opel headquarters in Ruesselsheim near Frankfurt, central Germany, Wednesday, June 3, 2009. (AP / Daniel Roland)

DETROIT — General Motors Co. says its board of directors has decided to keep its European Opel unit rather than sell a 55 per cent stake to Canadian auto parts maker Magna International.

The decision came late Tuesday at a daylong meeting in Detroit, ending a year of uncertainty for the troubled Opel brand and its English sister, Vauxhall.

CEO Fritz Henderson said in a statement that GM will present its restructuring plan for Opel to the German government soon. The move came even though Opel's unions on Tuesday reached agreement with Magna for US$390 million a year in cost cuts.

Magna, Canada's largest auto parts company and headed by Frank Stronach, had wanted to acquire Opel as a way to expand the company's sales to Russia, a prized market.