Though General Motors recently signed a memorandum of understanding with Magna International that would see a majority share in Opel go to the Canadian supplier, reports out of Germany indicate that an increased offer from Belgium’s RHJ International is quickly gaining favor.
The Financial Times says that GM and RHJ could sign a memorandum of understanding over the sale of Opel within just days. The paper says that GM and Magna have reached a standstill over access to the Detroit automaker’s technology, which Magna wanted access to in order to please its Russian financiers.
Earlier this month, news had come that GM was still shopping around Opel.
Magna had initially won the bidding war for Opel because it had promised to save German jobs – a sticking point for the German government, which had offered substantial financing. Now, according to reports, RHJ, a holding company, has made an offer that protects more jobs in Germany – and it is not asking for access to GM’s global technology.
The paper says that the offer is being taken “very seriously” and that GM is also open to improved bids from outside companies now that it has become more public as to just what GM is willing to provide beyond a controlling share in Opel.
Reuters says that China’s Beijing Automotive Industry Corporation is expected to make an improved bid and that even Fiat could make another offer despite CEO Sergio Marchionne’s insistence that he will now focus all of his company’s attention on the newly-acquired Chrysler.
06/30, 10:53 AM
posted by:
JakeK66
And tommorow on As The World Turns…
06/30, 11:13 AM
posted by:
johnnycanuck
Once again the decision making process at GM rivals that of a 3 year old suddenly confronted by the candy display at the supermarket checkout.
06/30, 11:26 AM
posted by:
Fletch
Why do all these companies think they can build cars for a profit in the commercial market? It’s one of the worst business models in our time.
Design a reliable car
Test the design
Build tools
Decide on a supply base, purchase their tools
Hire a workforce to assemble
Obtain a dealer network
HOPE people want to buy your product
Uphold a warranty
I missing a lot of steps, but it’s bad enough I think.
06/30, 11:49 AM
posted by:
JakeK66
@Fletch -
Because new companies can come in and skip steps 1-6 of your steps for practically nothing! That’s why!
06/30, 12:01 PM
posted by:
yarddog82abn
What I like most about this article is the absents of (need more oil’s) comments…
He seems to stay clear of anything that involves GM’s problems….
06/30, 12:16 PM
posted by:
skyaficionado
Darn, I was hoping to be able to buy from a Canadian car company, one that doesn’t make ugly little electric cars.
This situation reminds me of an old saying, something about a moron, a hand, birds and a bush.
06/30, 12:39 PM
posted by:
05Z88Path
Well said Johnny…
06/30, 1:39 PM
posted by:
Borat
Johnny is right. And so is Jake. I think for Opel brand it is a better deal. Remember that great number of Opels are built in Belgium and Belgium depends on those jobs more then Germany. Magna is basically acting as a front for Russian investor, Derepaska, who also owned 5% of GM stock (F U comrad commissar!). Since Derpaska own used toilet paper now he has little if any pull with dysfunctional board, but Belgian government has a pull with politicos in DC. My vote for Belgians, not Magna front. Then again, in a few weeks Tata will come along and chicken dance will go on.