GM late on Tuesday night sent shockwaves through Europe and the car industry by abandoning its planned sale of Opel to Canada’s Magna and Russia’s Sberbank. The surprise move sparked angry reaction from the German government and trade unions which have expended a lot of political capital on the controversial deal.

After a six-hour board meeting, the US carmaker said it would hold on to Opel and start restructuring its European unit, which also comprises British marque Vauxhall.

The decision marked a U-turn in GM’s strategy and reflects improved business confidence in the car sector, highlighted on Tuesday by another positive month of increased car sales in the US.