General Motors Co. is now considering whether it should retain its Opel and Vauxhall operations in Europe, a strategic reversal that raises new questions about the struggling car maker's direction and creates complications with the governments of Germany and Russia, The Wall Street Journal reported.

General Motors' new board may still sell its money-losing European Opel unit to a group led by Canadian auto parts maker Magna, but it needs guarantees that Opel's technology won't be used in Russia to compete against GM's Chevrolet, according to a person briefed on the sale talks, The Associated Press reported. The board on Friday balked at picking between bids for Adam Opel GbmH from a group led by Magna International Inc. that includes Russia's state-owned Sberbank, and one from GM's preferred bidder, Brussels-based investor RHJ International SA.

General Motors Co is considering a plan to raise funding to keep Opel as an alternative to selling the unit to Magna International, sources with knowledge of the deliberations said on Monday, Reuters reported. The development comes against a backdrop of escalating labor tensions and political stakes over GM's slow-moving effort to sell control of Opel and its British affiliate, Vauxhall. The Obama administration pledged on Monday to stay out of GM's choice of a buyer for Opel, while union leaders in Germany put more pressure on the U.S. automaker to make a decision.

The German government isn't planning a new car-incentive program to replace its €5 billion ($7.2 billion) cash-for-clunkers scheme, which runs out later this year, government spokesman Ulrich Wilhelm said Monday, The Wall Street Journal reported. He was speaking after local newspaper Handelsblatt reported that the ruling government's grand coalition parties are working on a replacement for the car-incentive program, spurred by fears that car makers and suppliers will suffer when the program ends.

The German government has earned about €300 million from its rescue of the country’s banks, according to a finance ministry estimate that could rekindle the debate about Berlin’s strategy in managing the financial crisis, the Financial Times reported. The ministry told the Financial Times that the government and Soffin, the agency that manages Germany’s €500 billion bank rescue fund, had so far earned about €300 million ($430 million, £260 million) in fees for credit guarantees granted to cash-starved banks at the height of the crisis.

Clients of Lehman Brothers in Europe may have to wait longer to get their assets back after a judge blocked a move to speed the unwinding of the bankruptcy, accountants warned on Friday. PricewaterhouseCoopers (PwC), administrators to Lehman Brothers International (Europe) (LBIE), had asked the High Court to approve a plan to accelerate the return of client's assets, tied up in the bank since its collapse last year, Reuters reported.

Saab has exited the Swedish equivalent of Chapter 11 bankruptcy, filing papers with a district court saying that it would not seek to extend its so-called reconstruction period. But the carmaker’s future is still uncertain as the government has refused the idea of a loan to help wrap up the sale of the company, The New York Times DealBook blog reported. The filing Wednesday, just a day after General Motors formally agreed to sell the troubled carmaker to a much smaller Swedish automaker, Koenigsegg, ending six months of reorganization that could bring a fresh start for Saab.

Emergency growth-stimulating policies are still needed to support continental Europe’s fragile economic recovery, even though Germany and France have emerged from recession, a top European Central Bank policymaker has warned. Axel Weber, Germany’s Bundesbank president, made it clear he would not rush to withdraw the extensive measures taken by governments and the ECB – which he said had helped the recent improvement in economic performance in Germany, the Financial Times reported.

Linklaters and Allen & Overy (A&O) have taken lead roles on the €12 billion (£10.3 billion) debt restructuring of ball-bearing manufacturer Schaeffler, in a move which could lead to a merger with auto-parts manufacturer Continental, LegalWeek reported. Linklaters advised a consortium of five lending banks comprising UBS, Royal Bank of Scotland, UniCredit, Commerzbank and LBBW, with London and Frankfurt-based banking partners Stephen Lucas and Marc Trinkaus leading the team. The debt restructuring should clear the path for a merger between Schaeffler and Continental.

Canadian companies facing bankruptcy are being given access to a new $1-billion lifeline from Ottawa and major financial firms to provide breathing space to restructure operations and return to solvency, Export Development Canada said yesterday. The EDC said it has agreed to become the top contributor to a new fund that would act as the bank of last resort to struggling companies who are unable to obtain credit through normal channels, The London Free Press reported on a Canadian Press story.