Even though Beijing Automotive (BAIC) tendered a non-binding offer for Opel, the company is said to have no chance of actually acquiring the brand. General Motors is still in talks with Magna and its partners, GAZ and Sberbank, and according to Sberbank CEO German Graf, "The choice has been made and the question now is of how to structure the deal."

Observers also feel that the GM-Magna agreement is merely waiting on some dotted I's, crossed T's and that the deal won't fall apart unless Magna blows it up or walks away. That hasn't stopped GM and the German government from creating the appearance of courting other bidders for Opel and Vauxhall, including BAIC and Belgium's RHJ.

BAIC appears to be serious, even if everyone assumes that GM's just using it as a decoy. Magna wants to get the paperwork inked by July 15, and that's around the same time that BAIC wants to make a binding offer for Opel's purchase. It's working with Deutsche Bank and PriceWaterhouse Coopers on its proposal, and we can only assume BAIC will be ready with a bag full of cash in the unlikely event Magna exits stage left.

[Source: Auto News, sub req'd]

Fiat CEO Sergio Marchionne, watching the travails of GM, Opel and Magna from his comfy Italian perch, has sent word that his previous offer for Opel is still on the table if anyone is interested. That offer, though, can't be sweetened because he doesn't "believe we could improve Fiat's offer. It's the most rational one we can put forward from an industrial viewpoint."

It doesn't appear as though anyone's listening. The German government wants to save German jobs, Opel workers are determined to vote down anyone who tries to take them away, and GM wants the most money and the least competition. Fiat's offer doesn't exactly fit that template.

GM and Magna & Co. will dance for a while longer, and if that doesn't work out, then GM will begin again with RHJ and Beijing Automotive. In the meantime, someone's going to have to pay to keep Opel running. Could it be that the most reasonable offer will be left unanswered while the other parties look for more expedient solutions?

[Source: Auto News, sub req'd]

When it came to buying Opel, Fiat's Sergio Marchionne told GM and the German government: "If you have a better offer, take it." They both took Magna, along with its Russian partners Sberbank and GAZ, because that consortium offered a better competitive arrangement and fewer job cuts in Germany. The deal wasn't slated to be finished until September, but it's encountered a few pockets of serious turbulence.

Magna's plans for engineering changes to Opels is worrying to GM because that alters the economics of the General's parts sharing. Magna also wants access to future GM technology, such as fuel cells, that GM doesn't want to hand over. GM is additionally worried about Sberbank, which has already stated its intention to sell its 35% stake once Opel is restructured; GM wants to have a hand in selecting the buyer, and it doesn't want its tech buoying the Russian car industry, nor does it want to compete with what could essentially be Russian versions of Opels.

Magna has its own problems as well, with at least one manufacturer telling the Canadian company that it could be a parts supplier or a competitor, not both. With all those fires to be doused, GM has entered into non-binding agreements with China's Beijing Automotive, and Belgium's RHJ International investment bank -- which looks like another Cerberus scenario -- as backup plans. As for the Germans, it was claimed today that no decision on Opel will come before the country's national elections on September 27.

The only problem with that is GM has stopped all payments to Opel, and the German firm is said to be losing €5 million a day. At that rate, the German government's €1.5 billion bridge loan to Magna that was part of the potential deal will run out before the elections. That means, as we've seen so many times before in this saga, something's got to break.

[Source: Bloomberg via TTAC]

If you're like us, you can't help but smile at the breathless optimism and certainty that the folks at Auto Express have for not-yet-released models. The latest car to catch their rendering artist's eye is the forthcoming Vauxhall Astra droptop.

According to AE, the new convertible Roadster variant will forgo the rear seats of the current TwinTop and instead adopt a more rakish two-seat design. The folding metal roof will reportedly integrate a pair of rollover fairings in its tonneau cover, and tighter overhangs with more aggressive ground effects.

Interestingly, AE claims that the Astra Roadster will not get a VXR performance variant, but it will receive the hot hatch's 2.0-liter turbo engine, reportedly good for 270 bhp and a 0-60 mph time in six seconds. Lesser engines will apparently include a 1.4-liter turbo giving 150 bhp and a 170 bhp 2.0-liter CDTI diesel.

Due to General Motors selling off Vauxhall and its twin brand Opel to Magna, the likelihood of seeing such a model Stateside would appear to be even slimmer than normal. Either way, the U.K. publication says the world will have to wait a while for the topless Astra, as the automaker will first roll out the five-door, followed by the three-door and wagon models and later an MPV. Only after the rest of the lineup is revealed will Vauxhall break out the suntan lotion.

[Source AutoExpress]

Sometimes deals get made, and then the dealmakers have to employ some pretty creative tactics to get the terms to work. Magna's deal for Opel included taking €1.5 billion in short term loans from the German government, the string attached being that Magna had to guarantee German jobs.

Saving jobs means selling more cars to maintain production levels, and outside observers are suggesting that Opel would need to cut prices by 40% to move enough metal to keep people on the lines. Of course, a 40% drop in prices makes profit almost impossible, and some are saying Magna doesn't care about profits right now. One analyst said Magna and GM might want to increase costs, since Magna would sell more parts and GM would get more royalties. That, however, seem like the wilder side of speculation.

Magna has said the 40% discount hypothesis is absurd. Magna's mandate was to save German jobs -- that doesn't mean other Opel or Vauxhall factories in other countries can't be shuttered. Such a discount would also bring competing automakers into the debate; they would need to fight battles both on the dealer lot and with their government lobbyists, who would question Opel's right to sell cheap cars with government assistance.

[Source: Bloomberg]

Although we're still a few months away from seeing the 2010 Opel Astra in the flesh at the Frankfurt Motor Show, the automaker has released a bevy of interior images of its new compact hatch following the reveal of the fully redesigned exterior.

The new interior takes a huge stride beyond the current model's drab yet functional environment, with upgraded materials and a completely reworked center stack housing controls for the sat-nav, HVAC and infotainment systems. It's mildly mobile phone-like and you wouldn't be alone seeing shades of the new Ford Fiesta in the Astra's center console.

Additionally, there's a redesigned glovebox with removable compartments for pens and coins, an optional compartment under the passenger seat and ambient lighting piped into the door handle surrounds, gear lever recess and center stack.

Based on the new Delta platform that underpins the Chevrolet Cruze, the new Astra will be available abroad later this year, packing a host of gasoline and diesel powerplants with outputs ranging from 100 to 180 hp. Make the jump for the release, along with a groovetastic video of the Astra's new insides.

If you tried telling us even as recently as a year ago that General Motors would be forced to sell its European assets and that a partnership between a Canadian parts supplier and a Russian bank would step up to take the stake, we'd have probably raised a few eyebrows. But such is the state of the General and the industry at large, with Magna and Sberbank looking poised to take a big chunk of Opel of GM's hands. The question everyone is asking, however, is what the Russian state bank wants with the German automaker.

According to emerging reports, the Russian financial institution could be preparing to pass on its share of the Opel shares to Russian automaker Gorkovsky Avtomobilny Zavod (GAZ). It's no great secret that the auto industry in Russia has failed to advance at the same rate as the rest of the world, and both the Russian federal government and Russian automakers like GAZ are keen to take their products into the, err... present. Taking advantage of Opel's technologies could be the winning ticket. In addition to the Opel stake, the deal also reportedly includes the purchase of GM's assembly plant in St. Petersburg for a princely $92 million.

[Source: Automotive News Europe – Sub. Req.]

You knew that something like this was coming sooner or later: at least one of Magna's clients have found the supplier's majority stake in Opel to be a conflict of interest. As it turns out, Volkswagen was the first automaker to cry foul.

Magna is a major supplier for VW and its brands, while Opel is a big-time competitor. Spokesman Michael Brendel says the company going to "monitor this development very closely." We're guessing that translates roughly to "'if Opel receives any preferential treatment over VW whatsoever, heads will roll."

Should all go according to plan, Magna and its partner Sberbank will have a combined 55% stake in the new Opel. GM will retain a 35% stake, while Opel's 25,000 employees will receive the remaining 10% in the company. The German government provided 1.5 billion euro to keep Opel from entering GM bankruptcy proceedings, making the deal with Magna possible.

Magna expects Opel to once again become profitable within four years, and the Canada-based supplier intends to bring Opels to Canada by the end of the year. Opel vehicles will not be making their way to the U.S. under the terms of the agreement, however.

Magna co-CEO Siegfried Wolf expects the Opel deal to be signed off on in the next five weeks.

[Source: Automotive News subs req'd]

Episode #130 of the Autoblog Podcast sees Chris, Sam, and Dan kibbitzing over the obvious news, but it's not an All-GM-Bankruptcy show. Starting with General Motors (after all, it's a huge event) we move on to Magna's deal with Opel (and GM, coincidentally). Volvo's clever implementation of a diesel hybrid in its wagon comes next before talk turns to Fiat-based Chryslers. It all wraps up at about an hour and a half after we polish off some of your questions. Thanks for listening, hit us up at Podcast at autoblog dot com with questions/comments/praise/scorn.

Follow the jump to subscribe to the Autoblog Podcast in iTunes, add the show to your RSS aggregator... or listen to it right now!

Over the last several years, and until General Motors' finances dictated that the Saturn brand had to be dispensed with entirely, it had become the North American outlet for Opel vehicles. Aside from the Outlook, all of Saturn's current models are based on their Opel equivalents. The most recent speculation about Saturn's fate had the dealer network being taken over by Roger Penske with a future vehicle supply coming from Renault via its South Korean subsidiary.

With this weekend's agreement in principle that supplier Magna International would take over control Opel, those speculative plans could be about to change. Magna chairman Frank Stronach told the Globe and Mail he wants to see Opel vehicles built in Canada. While Penske -- or any other Saturn suitor -- might have preferred to source future vehicles from Opel, getting them from Europe would prohibitively expensive with a weak dollar. However, if vehicles are sourced from a Canadian facility, it could become a viable prospect. The problem is Magna doesn't have a car assembly plant in Canada, but several Canadian plants are either scheduled to close or are without future product commitments, so Magna could end up buying a factory like the Oshawa truck plant from GM or even Chrysler.



[Source: Globe and Mail]