RHJ ups offer for Opel, commits to Vauxhall, has "good chances of winning"
Belgian investment firm RHJ, once considered a back-up bidder for Opel, is now considered a front-runner – at least according to its own CEO. RHJ head Leonhard Fischer has already told U.K. officials that the company is committed to retaining the Vauxhall name, and speaking to German newspaper Handelsblatt, he said he likes his chances in the run for Opel.
Opel workers still want GM to settle on Magna and have asked the German government to nudge to GM make that happen. In response, RHJ is considering lowering the amount of aid it will request from the federal government to an amount that is €900 million ($1.27B U.S.) lower than the number Magna has requested. The flip side: RHJ would pay GM less in royalties to make up the loss.
Not that The General seems to mind. GM's chief negotiator said that a deal with RHJ was "virtually wrapped up" and just waiting on government approval. A deal with RHJ would also give GM fewer headaches on the Russia and intellectual property issues – problems with a Magna deal that GM has described as "significant." With a basic deal between GM and RHJ concluded, the main dealings now appear to concern GM and the federal authorities. And if RHJ wins, the question everyone will want to know is: will RHJ be Cerberus with a Flemish accent?
[Source: Automotive News - Sub Req.]
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Reader Comments (Page 1 of 1)
Avinash machado 9:00AM (8/12/2009)
I guess if GM wants to buy back Opel later,RHJ might be a good choice. Magna might not want to sell Opel back in a few years.
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Bloke 9:23AM (8/12/2009)
You're assuming that Opel's board of directors would even consider it.
AC0 9:45AM (8/12/2009)
I don't understand how the Vauxhall brand has any value. Sure it has brand recognition, but for all the wrong reasons - its reputation has been destroyed over the last 15 years. I don't know anyone who can speak passionately about a Vauxhall. Infact, I can't think of a less desirable brand, even the once-languishing Koreans are more appealing now. Other mainstream brands do at least have *some* fans. Vauxhall is pure mid-life, middle-management, middle-of-the-road mediocrity. Their only brief moments of excellence in recent times have been the VX220 and the Monaro, but we all know those both had almost nothing to do with Vauxhall.
However, i think the Insignia is a fantastic car and if future products follow in its footsteps, Opel has some great potential. It's time that all the waste of rebadging these cars with the least desirable brand in the UK was stopped, Opel has more chance of succeeding in the UK than Vauxhall has of fixing its image.
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Richard S. 9:53AM (8/12/2009)
Vauxhall has the same cars as Opel and for the past many years even the name is the same. So if you are implying that Vauxhall sucks then it means that Opel sucks. The only difference could be in dealer service.
As for rebadging Vauxalls into Opels will not change much because people are not that stupid and they know they are basically the same cars. The only thing it would accomplish is to piss-off Vauxhall owners who would see their residual value crumble as their brand is extinguished.
Bloke 11:24AM (8/12/2009)
Given that Vauxhall commands approximately 11% of the UK market and has done consistently over the years, only just behind Ford and some 3% behind VAG - then I fail to see your point.
Bloke 11:30AM (8/12/2009)
"It's time that all the waste of rebadging these cars with the least desirable brand in the UK was stopped, Opel has more chance of succeeding in the UK than Vauxhall has of fixing its image."
Absolute rubbish.
william tell 12:56PM (8/12/2009)
@ Bloke
You mean 3% ahead of VAG. (Although if you go by 2009 YTD sales it's 5%). Vauxhall is no.2 in the UK
Ford 17% Vauxhall 13% VAG 8% UK market share.
On those figures Vauxhall if far too important for its new owners to ditch.
Bloke 1:55PM (8/12/2009)
William Tell - I was using 2008 year-end figures, but this year to date (July) VAG has 15.92% total market share in the UK (of which Volkswagen's is 8.14%) with Ford having 15.03% and Vauxhall 13.99%.
When you incorporate Vauxhall into GM UK, GM UK has a 14.84% market share, which still places it third.
chowt8 10:03AM (8/12/2009)
They should just e-bay it.
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walt 10:41AM (8/12/2009)
I can't help but wonder if GM won't just cancel the whole sale of Opel and take back their shares held by the trustee. They seem to have the money now, thanks to the largesse of the US Government and it would be hard to believe that the German government would refuse them the subsidy they would offer to the compartively inexperienced (at least in development, sales and manufacturing of cars) Magna and Ripplewood companies.
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hosss 10:59AM (8/12/2009)
I recently saw an interview with a Vauxhall/Opel senior exec on tv. He said that when, in the past, Opel branded cars had been sold in the UK (other than as personal imports at times when exchange rates made it worthwhile) they had performed way below expectation. As the UK is still one of the biggest markets for Vauxhall/Opel it would take a brave (ie. moronic) person to risk those sales. Much easier just to put a new badge on and keep everyone happy.
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Bloke 11:34AM (8/12/2009)
"I don't understand how the Vauxhall brand has any value. Sure it has brand recognition, but for all the wrong reasons - its reputation has been destroyed over the last 15 years."
15 years ago, Ford consistently held the top 4 or 5 sales spots every month. Since then, Vauxhall has crept in and now consistently holds several of those top 5 sales positions with its models. It also beat Ford with the manufacturer-direct nearly-new sales system, Network Q, which was a huge success.
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Other Man 11:54AM (8/12/2009)
GM doesn't need Opel or Vauxhall. They want engineers for good handling and overall performance? I'm sure their Australian Holden brand is fully capable of that (witness the G8).
And for mainstream, the new Cruze, Spark and new Malibu should at least be good enough for the world markets.
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Aznauto 12:23PM (8/12/2009)
Anything is better than being in the hands of clueless Detroiters, Opel has bright future ahead.
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Keith 12:53PM (8/12/2009)
GM should sell Opel/Vauxhall to Magna. They already know how to make good cars. To sell to a financial management company dooms the brand in a few years, like Chrysler and Cerberus. Why didn't Cerberus use its own money to bail out Chrysler? Would RHJ act the same way?
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Anthony 3:22AM (8/25/2009)
I totally agree, I hope the German government forces GM to accept Magna. They just don't wanna be in direct competition with a part supplier turned car builder/designer/marketer.
That's just TOOO bad isn't it? They messed up, they added and abetted America's dive into large trucks and cars they didn't need. When the economy took a dump, banks said "No" to car loans and gas prices went pear shaped they had to go to the Fed for help. I supported the Fed helping them, but in return, the New GM wanted to sell Opel. Fine, then you don't get to pick the buyer.
Andrew 1:37PM (8/12/2009)
RHJ is located in Brussel, it's a fair bet they speak with a French accent... :)
Belgium is complicated, Flemish in the North and French in the South and Brussel.
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Babu Mabu 2:46PM (8/12/2009)
I do not understand why Russians want to invest cash in Opel... Do not get me wrong Opel is a great company and makes good cars but splitting share with Magna and GM without having a major share is a headace. Let RHJ screw Opel the same way as any other financial company would and buy it as a sole owner. Could not immaging how Russians can deal with GM management (what is US government) and RHJ guys who are bassically just proxy to somebody's else monies.
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