Sale Denials Aside, GM's Future Looks Brighter With One Less European Partner
As it turns out, General Motors may have nixed the sale of its Opel and Vauxhall brands in 2009 due to the fact that the proposed buyers added 31 amendments to the deal after it was signed. The news comes courtesy of reports that cite U.S. diplomatic cables obtained by Wikileaks.
The rumormill is churning at full steam over whispers that General Motors is once again considering selling Opel. According to Reuters, two German magazines have reported similar tales without citing any sources, saying that GM is concerned that Opel won't be able to return to profitability anytime soon. The General hasn't commented on the situation publicly, but called the talk speculation in a letter to its employees. That comes after Dan Akerson, CEO of GM, said that Opel is continuing to ble
After months of negotiations with supplier Magna and its Russian partner Sberbank, General Motors has decided not to sell its Opel unit. The General mentioned in the post-jump press release that the new board of directors came to the decision to keep Opel due to GM's recovering financial situation coupled with an improving business environment in Europe. GM's move to keep Opel comes just one week after EU's Directorate-General for Competition began investigating the sale to Magna to be sure it w
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
With General Motors expected to file for chapter 11 bankruptcy protection in New York on Monday morning, negotiators in Germany scrambled to finalize a deal to save Opel from insolvency. Following a six-hour meeting in the German Chancellor's office in Berlin on Friday evening, a deal was finally announced by finance minister Peer Steinbrueck. Although an overall deal to transfer control of Opel from General Motors was reached, details are still being worked out and a final contract won't be sig
It looks like the German government is about to announce its list of preferred bidders for Opel this week, and the list is likely to include Fiat and Magna. Why would this list be coming from Chancellor Angela Merkel's spokesman and not, say, GM? Because the German government will have to step in with financing guarantees when the deal is made.
General Motors is very close to selling its Opel unit, with Canadian supplier Magna and Italian automaker Fiat among the suitors. If Magna and its Russian partners Gaz and Sberbank scores the winning bid for Opel, the parts supplier has big plans for the German brand and its factories. Automotive News Europe and German newspaper Welt am Sonntag both have quoted sources within Magna stating that the supplier could produce vehicles for other automakers. Furthermore, both Ford and Peugeot are repor