Opel fate still up in the air as Russian involvement reportedly complicates Magna offer
Over on General Motors' Europe "Driving Conversations" blog, VP John Smith has posted an update on the company's negotiations to sell a majority stake in Opel and Vauxhall. Although no final decision has been made yet, it's looking increasingly likely that the previous tentative agreement with Magna International may be usurped by a bid from RHJ International. This, despite the fact that the German government has been favoring the Magna bid because of the suppliers commitment to preserving jobs at German factories.
However, most of the money for the Magna bid is coming from the Russian government and Russian bank Sberbank. The involvement of multiple parties from different countries is making things difficult because of concerns with transferring intellectual property. GM's move to a global development process over the past decade means that Opel shares in much of the technology for hybrids, fuel cells and electric vehicles that the automaker has developed. For obvious competitive reasons, GM wants to retain control of much of that institutional knowledge, and the Belgian holding company seems to be much more amenable to that idea. Smith promises more updates in the coming weeks.
[Source: General Motors]
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Reader Comments (Page 1 of 1)
Swede 9:08AM (8/07/2009)
Of course GM wants to keep it to themselves, it's the diamond in their crown. But GM have again and again demonstrated arrogance and ignorance that have hollowed out their emotional capital with the german goverment. I share the views of the germans, I do not want to see GM remain at the helm, or have a buy-back option.
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Questor 9:18AM (8/07/2009)
Your funny, seriously though, without GM, Opel is dead. What the Russians are after, the player behind the scenes in all this, they are not going to get, GM's tech current and future. It doesn't belong to Opel or developed by Opel. End of story, you can pick up the pipe again now lol.
Swede 9:34AM (8/07/2009)
It was developed by Opel. Opel even paid the development costs, while GM snatched the technology. Hence my, and many of my fellow europeans, disgust at GM.
Throwback 9:58AM (8/07/2009)
Opel has been a wholly owned subsidiary of GM for nearly 100 years. How is it NOT GM's property?
alex 11:54AM (8/07/2009)
Yeah I don't get this whole sentiment that Opel is a great car company that GM is screwing up... Opel is as GM as Chevy or Buick. They've owned them since 1929 for cryin outloud! If Opel is so awesome, it was GM's doing!
engineerd 10:18AM (8/07/2009)
When looking to sell a major Insignia to a Combo of companies, the Agila-ty of the sale is slowed way down. Movano-ing the sale through government bureaucracies and red tape can be quite frustrating and will bring even the most Vivano exec to his knees. Of Corsa, there are ways to do this that are Antara procedure, and could make things GTg (good to go).
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Avinash machado 10:47AM (8/07/2009)
I hope GM will simply keep Opel.
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Beastage 10:58AM (8/07/2009)
Either that or give it to FIAT... Russian involvement in this deal means death to Opel, no matter what obligations Magna will take on themselves.
Swede 12:25PM (8/07/2009)
Doesnt the prerequisites for recieving all that bailout stipulate that GM must sell Opel?
Level 2:13PM (8/07/2009)
if GM wants to retain everything about Opel minus the Brand name like they will did with the sale of Saturn, they should sell the Brand name cheaper instead of asking so much money for it...Otherwise GM should STFU and quit whining and sell Opel entirely altogether...
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Questor 4:17PM (8/07/2009)
They are not receiving anything for Opel. They are being asked to surrender 65% of Opel in exchange for loans to finance Opel's operations. Opel is not profitable it has relied on financing from GM for most of the decade. Read the letter linked to the story.
Artega 9:34AM (8/16/2009)
opel has developed most cars itself. The company just used the platforms given by GM but used their own technology. Thats why GM wants to get Opel again because if magna gets opel GM gets problems with the patent laws
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