Euro factory will close, Chinese factory will be built, say reports
7 July 2009

Beijing Automotive Industry Corp (BAIC) will close a European factory and build an Opel factory in China andif its bid for Vauxhall/Opel succeeds, according to reports.

BAIC has put in a bid for 660 million Euros (£568 million) for Vauxhall/Opel.

Twitter - follow

Initial reports in the Financial Times newspaper suggest it would shutdown Opel's Antwerp plant in Belgium and cut Opel's workforce across Europe.

The Chinese carmaker would then open Opel's first factory in China in 2012, building models targetted at the Chinese market.

BAIC wants a 51 percent stake in Opel and its British sister brand Vauxhall, leaving GM with 49 percent.

It says its plan for the European unit of General Motors will need less state aid than a rival bid from Magna International.

BAIC says it would need 2.64 billion Euros (£2.3 billion) in financial aid from Berlin and the German states where Opel has factories. Magna is seeking 4.5 billion Euros (£3.8 billion) in state aid for Opel.

BAIC's chances hinge on a failure of GM's negotiations with Magna. The parts supplier has the backing of large parts of the German government and regional politicians.

GM and Magna have set a target of 15 July for agreeing on the sale of a majority stake in Opel.

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

  • Jaguar E-Pace 2018 review hero front
    Car review
    20 April 2018
    Can Jaguar’s compact SUV bring flair and dynamic polish to a fast-growing class?
  • Audi TT RS Coupé
    First Drive
    20 April 2018
    The Audi TT RS has the looks, a vociferous engine and the supercar-baiting performance, but is it too uncompromising to use as a daily driver?
  • Lamborghini Urus review 2018 hero front
    First Drive
    19 April 2018
    The supercar maker's new 4x4 is massively capable wherever it goes, while being extremely conspicuous and costly while it does it
  • Skoda Kodiaq
    First Drive
    19 April 2018
    High-spec seven-seater Kodiaq begins its family life with a lot to prove — for Skoda and SUVs
  • Ford Focus RS Race Red Edition front
    First Drive
    18 April 2018
    Ford drafts in some tasty extras for this limited-run Focus RS swansong edition