Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[You didn't think the battle for Opel was over, did you? Belgium reportedly asking EU to investigate]]>http://www.autoblog.com/2009/09/13/you-didnt-think-the-battle-for-opel-was-over-did-you-belgium/http://www.autoblog.com/2009/09/13/you-didnt-think-the-battle-for-opel-was-over-did-you-belgium/http://www.autoblog.com/2009/09/13/you-didnt-think-the-battle-for-opel-was-over-did-you-belgium/#commentsFiled under: , , , ,



When GM decided to hand 55% of Opel to Magna, you didn't think the Belgians were just going to have some waffles and call it quits, did you? Oh no. Belgium's prime minister made a call to the EU president about the deal, and the EU Competition Commissioner Neelie Kroes told a Belgian newspaper, "If something happens against the rules, I will take action."

According to the prime minister, however, the rules have already been broken. Even though Magna has said it will need to trim more workers than expected, the Belgian leader said, "Financial aid given by a country that guarantees that the factories in their country don't close is against EU rules." The sale to Magna has observers screaming, "Politics!" but has made German Chancellor Angela Merkel look very good in the run-up to elections on September 27; with EU scrutiny all she really needs to hope for is that it takes them longer than two weeks to come to an adverse finding, if that should happen.

Opel labor, however, isn't so pleased anymore now that Magna has said it will need to eliminate more jobs than it originally proposed. Initial estimates put job losses at 2,500 workers in Germany; now the Canadian company is saying 4,100 jobs could be lost. It appears that Opel workers plan to assert themselves if Magna does anything differently than it said it would. In addition, labor wants "a veto right over job cuts, transfer of production or plant closures," which are the kinds of rights VW labor unions have. If you ask us, the dust on this one is nowhere near settled.

[Source: Automotive News, sub req'd]


You didn't think the battle for Opel was over, did you? Belgium reportedly asking EU to investigate originally appeared on Autoblog on Sun, 13 Sep 2009 10:36:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>belgiumcanadaeueu commissioneu competition commissionEuCommissionEuCompetitionCommissioneuropegeneral motorsGeneralMotorsgermanygmgovernmentmagnaopelrhjSun, 13 Sep 2009 10:36:00 EST http://www.autoblog.com/feed/19159391/article-comments.xml http://www.autoblog.com/feed/2009/09/13/you-didnt-think-the-battle-for-opel-was-over-did-you-belgium/19159391/article-detail.xml 19159391 http://www.blogcdn.com/www.autoblog.com/media/2009/09/belg_eu_commission_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2009/09/belg_eu_commission.jpg <![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 http://www.autoblog.com/feed/19139912/article-comments.xml http://www.autoblog.com/feed/2009/08/26/opel-labor-union-goes-on-the-offensive-gm-negotiator-meets-with/19139912/article-detail.xml 19139912 http://www.blogcdn.com/www.autoblog.com/media/2009/08/opel_saga_7_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2009/08/opel_saga_7.jpg <![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 http://www.autoblog.com/feed/19137568/article-comments.xml http://www.autoblog.com/feed/2009/08/24/gm-issues-a-no-decision-on-fate-of-opel-german-government-not-h/19137568/article-detail.xml 19137568 http://www.blogcdn.com/www.autoblog.com/media/2009/08/gm_opel_nod_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2009/08/gm_opel_nod.jpg <![CDATA[RHJ ups offer for Opel, commits to Vauxhall, has "good chances of winning"]]>http://www.autoblog.com/2009/08/12/rhj-ups-offer-for-opel-commits-to-vauxhall-has-good-chances-o/http://www.autoblog.com/2009/08/12/rhj-ups-offer-for-opel-commits-to-vauxhall-has-good-chances-o/http://www.autoblog.com/2009/08/12/rhj-ups-offer-for-opel-commits-to-vauxhall-has-good-chances-o/#commentsFiled under: , , ,



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.]

RHJ ups offer for Opel, commits to Vauxhall, has "good chances of winning" originally appeared on Autoblog on Wed, 12 Aug 2009 08:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>acquisitiongermanygmgovernmentmagnaopelrhjWed, 12 Aug 2009 08:30:00 EST http://www.autoblog.com/feed/19123840/article-comments.xml http://www.autoblog.com/feed/2009/08/12/rhj-ups-offer-for-opel-commits-to-vauxhall-has-good-chances-o/19123840/article-detail.xml 19123840 http://www.blogcdn.com/www.autoblog.com/media/2009/08/gm_rhj_opel2_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2009/08/gm_rhj_opel2.jpg <![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 http://www.autoblog.com/feed/19121135/article-comments.xml http://www.autoblog.com/feed/2009/08/07/opel-fate-still-up-in-the-air-as-russian-involvement-reportedly/19121135/article-detail.xml 19121135 http://www.blogcdn.com/www.autoblog.com/media/2009/08/opel_bk_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2009/08/opel_bk.jpg <![CDATA[REPORT: Opel, waiting on GM and the German government, heading toward bankruptcy]]>http://www.autoblog.com/2009/08/03/opel-waiting-on-gm-and-the-german-government-heading-toward-ba/http://www.autoblog.com/2009/08/03/opel-waiting-on-gm-and-the-german-government-heading-toward-ba/http://www.autoblog.com/2009/08/03/opel-waiting-on-gm-and-the-german-government-heading-toward-ba/#commentsFiled under: , , , ,



There are five noteworthy parties involved in the negotiations over Opel's fate: GM, the German government, the Opel trust, states with Opel manufacturing plants, and the Opel labor union. The Opel trust is the body created to run Opel after GM's bankruptcy, and consists of five members: a chairman, a representative for the German states with Opel plants, a representative for the German government, and both the CFO and chief negotiator for GM Europe. Got all that?

At this point Opel's future looks to have three possible trajectories: a sale to Magna, a sale to Belgian investment bank RHJ, or bankruptcy. Beijing Automotive also bid on Opel but it hasn't been mentioned in any recent discussions. The negotiating parties, however, haven't come to a decision on which future is the best for the German brand.

GM is still negotiating with Magna, but Magna apparently made promises to its Russian backers -- Sberbank and GAZ -- regarding "intellectual property and [GM's] Russian operations that simply could not be implemented." GM says it doesn't have a preferred bidder, but it's working with Magna to make the Austrian company's bid acceptable. The German states' rep on the Opel trust, and labor are said to prefer Magna win.

On the other hand, the German government rep is said to prefer the offer from RHJ or letting Opel declare insolvency. GM's negotiator said the RHJ tender is "a much simpler structure and would be easier to implement." The hitch could be that the German government's financial assistance to Opel is dependent on a the new buyer having a long term plan for the company and saving German jobs. Those aren't the kinds of terms usually associated with investment banks. According to one German premiere, though, a "clear decision" on Opel should come next week.

[Source: Bloomberg]

REPORT: Opel, waiting on GM and the German government, heading toward bankruptcy originally appeared on Autoblog on Mon, 03 Aug 2009 09:31:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>europegeneral motorsGeneralMotorsgermanygmmagnaopelplantsrhjunionsMon, 03 Aug 2009 09:31:00 EST http://www.autoblog.com/feed/19116802/article-comments.xml http://www.autoblog.com/feed/2009/08/03/opel-waiting-on-gm-and-the-german-government-heading-toward-ba/19116802/article-detail.xml 19116802 http://www.blogcdn.com/www.autoblog.com/media/2009/08/opel_bk_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2009/08/opel_bk.jpg <![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 http://www.autoblog.com/feed/19103247/article-comments.xml http://www.autoblog.com/feed/2009/07/20/report-german-economics-minister-says-no-opel-buy-back-option-f/19103247/article-detail.xml 19103247 http://www.blogcdn.com/www.autoblog.com/media/2009/07/opel-building-sign-getty-orlowski-580_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2009/07/opel-building-sign-getty-orlowski-580.jpg <![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 http://www.autoblog.com/feed/19086198/article-comments.xml http://www.autoblog.com/feed/2009/07/05/beijing-automotive-bids-for-opel-magna-still-expected-to-close/19086198/article-detail.xml 19086198 http://www.blogcdn.com/www.autoblog.com/media/2009/07/opel_baic_gm_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2009/07/opel_baic_gm.jpg <![CDATA[Marchionne confirms Fiat still interested in Opel]]>http://www.autoblog.com/2009/06/28/marchionne-confirms-fiat-still-interested-in-opel/http://www.autoblog.com/2009/06/28/marchionne-confirms-fiat-still-interested-in-opel/http://www.autoblog.com/2009/06/28/marchionne-confirms-fiat-still-interested-in-opel/#commentsFiled under: , , , ,

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]

Marchionne confirms Fiat still interested in Opel originally appeared on Autoblog on Sun, 28 Jun 2009 19:05:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>beijing automotiveBeijingAutomotiveeuroeuropefiatgazgermanygmgovernmentmagnaopelrhjsberbanksergio marchionneSergioMarchionneSun, 28 Jun 2009 19:05:00 EST http://www.autoblog.com/feed/19080238/article-comments.xml http://www.autoblog.com/feed/2009/06/28/marchionne-confirms-fiat-still-interested-in-opel/19080238/article-detail.xml 19080238 http://www.blogcdn.com/www.autoblog.com/media/2009/06/marchi_opel_fita_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2009/06/marchi_opel_fita.jpg -1 2