Reports suggest non-binding bid has been lodged; Magna claims a deal is nearly done
3 July 2009

BAIC has submitted a non-binding offer to buy Opel/Vauxhall from GM, with a binding one set to follow in the coming days, according to sources.

Canadian parts supplier Magna already has a deal in place with GM, but GM has now confirmed it is talking to other interested parties believed to include BAIC, Fiat and Belgian private equity firm RHJ International.

BAIC’s non-binding offer is reported to be just two pages long and lacking detail on its intended plans for what to do with Opel/Vauxhall. The Chinese state owned manufacturer currently has deals with Daimler and Hyundai to build cars in China.

Twitter - follow autocar.co.uk

Reports suggest that BAIC will follow up its non-binding offer with a binding one by the middle of July. Opel has already spoken of its reservations about a BAIC takeover, claiming it is only interested in buying its technology.

Magna’s funding partner Sberbank has dismissed reports that its deal for Opel/Vauxhall may collapse, with its CEO saying the race was all but over.

Mandelson’s Vauxhall pledge

Magna sources have today said that its issues with GM, believed to involve pension scheme payments, potential job losses and conflicts of interests with other manufacturers, will be resolved by 7 July.

The source said many of the points were ironed out at a meeting last week between GM CEO Fritz Henderson, lead GM negotiator John Smith, Magna co-CEO Siegfried Wolf and Magna Chief Operating Officer Herbert Demel.

“The only remaining issue is whether New Opel gets the sales distribution rights to GM's Chevrolet brand for the Russian market, but a solution should be achievable here,” the source said. “They came significantly closer to one another in the key points.”

Mark Tisshaw

See all the latest Vauxhall reviews, news and video

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Lexus LC500
    Car review
    20 October 2017
    Futuristic Lexus LC coupé mixes the latest technology with an old-school atmospheric V8
  • Maserati Levante S GranSport
    First Drive
    20 October 2017
    Get ready to trade in your diesels: Maserati’s luxury SUV finally gets the engine it’s always needed
  • Jaguar XF Sportbrake TDV6
    First Drive
    19 October 2017
    The handsome Jaguar XF Sportbrake exhibits all the hallmarks that makes the saloon great, and with the silky smooth diesel V6 makes it a compelling choice
  • Volkswagen T-Roc TDI
    First Drive
    19 October 2017
    Volkswagen's new compact crossover has the looks, the engineering and the build quality to be a resounding success, but not with this diesel engine
  • BMW M550i
    First Drive
    19 October 2017
    The all-paw M550i is a fast, effortless mile-muncher, but there's a reason why it won't be sold in the UK