GM has pulled the plug on its deal to sell GM Europe, including Vauxhall and Opel, to car parts maker Magna.

The move comes after months of uncertainty about the future ownership of the car maker.

GM’s board cited “an improving business environment for GM over the past few months, and the importance of Opel//Vauxhall to GM’s global strategy”, in a statement released last night.

However, the move does not eliminate all uncertainty as it is widely believed there will still be significant job losses in GM’s European operation.

“GM will soon present its restructuring plan to Germany and other governments and hopes for its favorable consideration,” said Fritz Henderson, president and CEO. “We understand the complexity and length of this issue has been draining for all involved. However, from the outset, our goal has been to secure the best long term solution for our customers, employee, suppliers, and dealers, which is reflected in the decision reached today. This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall’s long-term future.”