General Motors’ German Adam Opel AG brand is currently up for sale but Germany’s economics ministry board revealed on Tuesday that it won’t let the Detroit automaker simply sell the division to the highest bidder. Instead, the ministry has sided with Opel workers, deeming the winning bidder must back GM’s European operations.
That means Opel’s winning bidder will have to preserve the company’s production sites in Germany and other European countries, securing the jobs of Opel’s current employees. Some bidders reportedly planned to move some Opel production out of Europe to save on production costs.
Additionally, the ministry says that it is committed to the survival of Opel, even if GM is forced into Chapter 11 bankruptcy. As such, the ministry voiced is opinion that GM should setup an independent trustee to oversee Opel’s assents as a safeguard against creditors in the case of a bankruptcy filing, according to The Wall Street Journal.
“A temporary transfer of General Motors shares to a trustee would help to preserve the interest of creditors as well as of the company,” the ministry’s statement said. “If interim help should become necessary before a final agreement with an investor has been found, the trustee model is an indispensable precondition to be able to decide about a possible use of guarantees.”
Italy’s Fiat and a consortium made up of Canadian parts supplier Magna and Russian automaker GAZ are believed to be the leading bidders for the Opel brand.
