Currently reading: GM: EU concerns killed Magna deal
Competition Commission concerns made GM reconsider Opel deal

General Motors reconsidered its decision to sell Opel/Vauxhall after the Competition Commission raised concerns over alleged preferential treatment by the German government.

In October Competition Commissioner Neelie Kroes wrote to German economy minister Karl-Theodor zu Gettenberg regarding “significant indications” that aid to Opel was subject to the precondition that Magna was selected as buyer.

The decision by GM to keep Opel/Vauxhall has angered workers and some management at Opel. The GM board initially indicated it would sell a 55 per cent stake in Opel to Magna and its Russian partner, Sberbank, in September.

"The catalyst for all this was the EU saying you [the German government] only made the money available to one investor," said GM board chairman Ed Whitacre. "The board did what they should have done and revisited the issue."

He added: "We had to ask ourselves how we could be a global player and not play globally."

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sorrel 11 November 2009

Re: GM: EU concerns killed Magna deal

You may be right in some respects, but unless the Russian government decress Opel is not allowed to sell cars there, the market won't reduce from where it is at the moment, which is very good. The Astra sells extremely well in Russia and the Opel plant there is unlikely to close, so I don't see the collapse of the Magna deal having much effect. Talk to people in Russia and they couldn't care less about the failed deal or who owns Opel; they like the product and will continue to buy it, as they do Chevrolet/Deawoo.

crashbangwallop 11 November 2009

Re: GM: EU concerns killed Magna deal

CapsLock you say

Game set and match GM! also Mandy did a great job, he was clear from the start that funding would be made available to the owner whoever that maybe and many people on here were not happy with him taking/making the right choice.

I think you are way off on this. If you have a look at today's FT you will see that funding isn't in place. The funding offered to Magna by the German government was dependent on that particular rescue plan. Angela Merkel has advised GM that they will have to find the vast majority of any new funding and they have to pay back the bridging loan. Magna and the Russian bank are also going to get money back from GM to cover their costs.

Given GM has now peed off the 2 largest markets for its cars, they are hoping Mandy is going to provide the money to keep open Luton. GM Europe is going to make huge losses as it restructures and lets see how long the US taxpayer wants to fund that.

CapsLock 11 November 2009

Re: GM: EU concerns killed Magna deal

Game set and match GM! also Mandy did a great job, he was clear from the start that funding would be made available to the owner whoever that maybe and many people on here were not happy with him taking/making the right choice.

it also shows the superbness of the EU and how it now is acting for all countries concerned; this is a good thing and it is good to be part of the EU. Now Mandy is free to discuss with GM and hopefully safe guard lots of UK jobs and maybe even bring some new ones!