GM pushing to conclude Opel sale
August 13, 2009 by David Twomey
General Motors Company has no intention of reopening the sale process for its European operations, which build Opel and Vauxhall vehicles, and remains intent on reaching a deal with one of the two remaining bidders as quickly as possible.
GM Chief Financial Officer Ray Young said the company was looking to wrap up the Opel/Vauxhall sale as quickly as possible even after improvements in its own financial position removed the immediate threat of bankruptcy for Opel, reports Reuters Newsagency.
“I think everyone is anxious to get this thing done,” Mr Young said on the sidelines of a GM event at its vehicle testing facility outside Detroit.
Canadian auto parts group Magna International is locked in a battle with Belgium-based investor RHJ International to buy GM Europe in negotiations that also involve the German government.
Berlin has thrown its support behind Magna’s offer, which is backed by Russia’s Sberbank, on the grounds that it offers better protection for the 25,000 jobs on Opel’s payroll in Germany.
GM has expressed reservations about the Magna deal, saying it wants to make sure that its proprietary technology in Opel/Vauxhall is protected in any partnership. Talks between GM and Magna last week failed to produce a deal for Opel.
GM Chief Executive Fritz Henderson told Reuters in an interview at the same event that he did not expect to reopen the Opel sale to any party beyond Magna and RHJ.
“I don’t think so,” Mr Henderson said when asked if a dark horse bidder could emerge for Opel.
Although GM is leading the talks on the Opel sale, the German government is being asked to provide billions of euros in aid to finance the deal.
The German Chancellor, Angela Merkel, has openly supported the Magna bid for GM Europe, and has indicated she would intervene personally to support Magna if needed.
With a federal election looming next month, the German government is keen to avoid an unpopular takeover and mass layoffs.
GM emerged from bankruptcy in the United States in July under the majority ownership of the US Treasury, which invested US$50 billion in the troubled carmaker.
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For the last time – I’ll give you $50 and my matchbox collection. Final offer.
You’ll be hard pressed to get a better offer.
The same pictures are used every time with this story.
Don’t tell me Daewoo is more desirable than Opel? Coz they are keeping Daewoo ~
This is just my own litte fantasy, but if Holden had the moolah they could buy opel and then we may just get the Astra, Insignia and the Corsa. Just maybe……
They are keeping Daewoo as it is a profitable company unlike Opel…
^^^ Profitable? Its getting a bailout from the Korean government and has racked up huge losses. But I’d say it’ll be cheaper to get Daewoo profitable than Opel, given the difference in labour markets.
Tim i think thats what JAE meant.
Lol yeah sorry I missed that
Nope… Daewoo only got a government loan because of the huge amount of money owed to it by other GM companies. Because GM wasnt paying daewoo the amount owed, it didnt have enough money to function.
Seriously, some research before writing comments do wonders
Actually no, GM Daewoo nearly went belly up not because of GM’s other brands not paying them, it was because sales of GM Daewoo cars and kits tanked by half, so their sales went from 0.9 million cars in 2008 to 261,000 for the first half this year. Their losses in 2008 was $US702 million, and as of December they were $US6.8billion in debt. This is a division in a very very bad way, and if Opel had the labour flexibility that GM Daewoo has, there’d be a fair chance GM would have held onto Opel and cut away GM Daewoo instead.
I could tell you to do some research given thats two strikes now, but that would just be snide.
Will Opel ever be sold in AUS again?
It wont be Holden selling them so a new company will have to be formed.
The FIAT Group was the best option as they are already present in most markets with a ready to go dealer-network, and *free* use of MultiAir
Time will tell!
Is Vauxhall included in the Opel sale or are they going to start sourcing cars from elsewhere?…
Just for the record Holden don`t have any money, what they have is our taxes. So Holden would never in their wildest dreams afford Opel.