Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[REPORT: Opel labor union goes on the offensive, GM negotiator meets with German feds]]>http://www.autoblog.com/2009/08/26/opel-labor-union-goes-on-the-offensive-gm-negotiator-meets-with/http://www.autoblog.com/2009/08/26/opel-labor-union-goes-on-the-offensive-gm-negotiator-meets-with/http://www.autoblog.com/2009/08/26/opel-labor-union-goes-on-the-offensive-gm-negotiator-meets-with/#commentsFiled under: , , , ,



The battle for Opel has added another front: Opel labor unions at two of the company's German factories retracted an agreement made last year to forgo vacation bonuses. The move demands that General Motors pay the laborers €70 million ($100.2M U.S.) by next week, the amount that they agreed to give up when GM was trying to rescue itself. Workers at two other Opel factories in Germany are expected to make the same move some time this week. The workers want GM to sell to Magna, and if The General doesn't make its intentions plain soon, the next step will be for Opel labor to demand the wage hike they waived last year, which would see the automaker owe another several hundred million euros.

According to Automotive News, GM's board met to discuss which bidder, Magna or RHJ, it would go with, but instead of making a decision it sent its lead negotiator back to Germany to talk to government officials. As of last week, there were rumors of GM wanting a buyback option for Opel, which could get GM quickly back into Europe when the company restores its fortunes. The option seemed to make RHJ the leading bidder, but not the one German government or labor wants.

If RHJ wins, it will get no state aid. If Magna wins, it has been pledged €4.5B ($6.4B U.S.) in government loans. The disadvantage could cause RHJ to deal with Opel drastically, which would greatly displease a whole lot of Germans. Perhaps that is why there is now talk of GM not selling Opel at all, instead looking to raise $4.3 billion to keep Opel in the family. With GM barely out of bankruptcy, and with economies still shaky, observers aren't sure where GM would get that kind of money. It is thought that GM will announce its intentions in the next day or so.

[Source: Automotive News, sub req'd]

REPORT: Opel labor union goes on the offensive, GM negotiator meets with German feds originally appeared on Autoblog on Wed, 26 Aug 2009 10:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>europegeneral motorsGeneralMotorsgermanygmmagnaopelplantsrhjrhj internationalRhjInternationalunionsvauxhallWed, 26 Aug 2009 10:58:00 EST<![CDATA[GM issues a 'No-Decision' on fate of Opel, German government not happy]]>http://www.autoblog.com/2009/08/24/gm-issues-a-no-decision-on-fate-of-opel-german-government-not-h/http://www.autoblog.com/2009/08/24/gm-issues-a-no-decision-on-fate-of-opel-german-government-not-h/http://www.autoblog.com/2009/08/24/gm-issues-a-no-decision-on-fate-of-opel-german-government-not-h/#commentsFiled under: , ,



General Motors was meant to decide who would be the winning bidder for Opel last Friday. But it didn't. Instead, GM asked the German government for more information on federal financial assistance available to buyers. The German government would like Magna to take over Opel as it vowed to retain a huge chunk of jobs in Germany, but GM has given every indication of preferring Belgian investment fund RHJ.

GM wants to know how much money RHJ would get in case it was chosen to buy Opel. It looks like GM still has issues with Magna buying Opel and is looking for a way to choose RHJ and save at least a little face with the German government. If RHJ can get an attractive financial package from the feds, it can also save more jobs than it might be inclined to otherwise, and GM doesn't have to worry about Russian competitors using its own technology.

The German government wants none of it, though. It has called on the United States government to get GM to make a decision. That isn't likely to happen, but it shows how intense things are with Opel, politicians, labor and upcoming elections. On a side note, the BBC reported that part of GM's plan could include a buy-back option for Opel, which, if true, would probably make a lot more sense for RHJ than Magna.

[Source: Auto News, sub req'd]

GM issues a 'No-Decision' on fate of Opel, German government not happy originally appeared on Autoblog on Mon, 24 Aug 2009 07:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>europegazgeneral motorsGeneralMotorsgermanygmmagnaopelrhjrhj internationalRhjInternationalsberbankMon, 24 Aug 2009 07:58:00 EST<![CDATA[Opel fate still up in the air as Russian involvement reportedly complicates Magna offer]]>http://www.autoblog.com/2009/08/07/opel-fate-still-up-in-the-air-as-russian-involvement-reportedly/http://www.autoblog.com/2009/08/07/opel-fate-still-up-in-the-air-as-russian-involvement-reportedly/http://www.autoblog.com/2009/08/07/opel-fate-still-up-in-the-air-as-russian-involvement-reportedly/#commentsFiled under: , , , ,



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]

Opel fate still up in the air as Russian involvement reportedly complicates Magna offer originally appeared on Autoblog on Fri, 07 Aug 2009 08:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>gm europegm europe saleGmEuropeGmEuropeSalemagnamagna internationalmagnainternationalopel saleOpelSalerhjrhj internationalRhjInternationalsberbankFri, 07 Aug 2009 08:58:00 EST<![CDATA[German economics minister reportedly says no to Opel buy-back option for GM]]>http://www.autoblog.com/2009/07/20/report-german-economics-minister-says-no-opel-buy-back-option-f/http://www.autoblog.com/2009/07/20/report-german-economics-minister-says-no-opel-buy-back-option-f/http://www.autoblog.com/2009/07/20/report-german-economics-minister-says-no-opel-buy-back-option-f/#commentsFiled under: , ,



One of the many clauses that General Motors is reportedly trying negotiate into any deal involving majority control of Opel is the option to eventually buy back the stake it is selling.

As the theory goes, GM isn't selling Opel because it feels like it doesn't add value - Opel in fact offers huge value to GM and has had lead responsibility for developing the global mid-sized, compact and small car platforms being used by the automaker. Instead, Opel is on the block because the home office needs the cash. Thus, if GM is able to be flush with cash once again, it would like to reserve the right to regain to full control.

According to Reuters, Karl-Theodor zu Guttenberg, Germany's economics minister is having none of that business. In fact, he has apparently told Frankfurter Allgemeine Sonntagszeitung that no such clause would be allowed if Opel is to receive any German government aid. The German government is also wary of any financial groups like Belgium's RHJ International taking a stake - instead, they reportedly prefer an owner with a long term interest in the industry like Magna International.

[Source: Reuters | Image: Ralph Orlowski/Getty]

German economics minister reportedly says no to Opel buy-back option for GM originally appeared on Autoblog on Mon, 20 Jul 2009 09:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>baicbeijing automotivebeijing automotive industry corpBeijingAutomotiveBeijingAutomotiveIndustryCorpgeneral motorsGeneralMotorsgm opelgm opel vauxhallGmOpelGmOpelVauxhallKarl-Theodor zu GuttenbergKarl-theodorZuGuttenbergmagnamagna internationalmagnainternationalopelopel saleOpelSalerhjrhj internationalRhjInternationalMon, 20 Jul 2009 09:29:00 EST<![CDATA[Beijing Automotive bids for Opel; Magna still expected to close deal]]>http://www.autoblog.com/2009/07/05/beijing-automotive-bids-for-opel-magna-still-expected-to-close/http://www.autoblog.com/2009/07/05/beijing-automotive-bids-for-opel-magna-still-expected-to-close/http://www.autoblog.com/2009/07/05/beijing-automotive-bids-for-opel-magna-still-expected-to-close/#commentsFiled under: , , , ,



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]

Beijing Automotive bids for Opel; Magna still expected to close deal originally appeared on Autoblog on Sun, 05 Jul 2009 11:07:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>baicbeijing automotivebeijing automotive industry corpBeijingAutomotiveBeijingAutomotiveIndustryCorpchinaeuroeuropegazgeneral motorsGeneralMotorsgermanygmmagnaopelrhjrhj internationalRhjInternationalsberbankvauxhallSun, 05 Jul 2009 11:07:00 EST