Sources claim GM will raise funds to keep the firm
25 August 2009

General Motors is planning to raise funds to keep Opel/Vauxhall, rather than sell it to either Magna or RHJ International.

Sources close to the deal told Reuters that GM was now considering raising $4 billion (£3.5bn) after a board meeting on Friday declined to endorse either of the two bids it had received for Opel/Vauxhall.

GM has spent several months in talks with various parties regarding the sale of Opel/Vauxhall, with Magna and RHJ emerging as the two leading candidates.

Both have now submitted bids, but GM has reportedly rejected them both, bringing negotiations to a standstill.

A German labour representative said he expected official confirmation from GM very shortly about its plans, but he feared the latest revelations were damaging for the company.

Armin Schild, IG Metall's leader in the state of Hesse where Opel has its headquarters, said, “I see that as a bad sign for the future of Opel.”

Twitter - follow all the latest Vauxhall reviews, news and video

Find an Autocar car review

Driven this week

Join the debate


25 August 2009

You must be joking?

GM are going to have very little credibility if they don't go through with this sale. Couple that with the money both the general and the various bidding companies have spend on this whole debacle, they are going to end up with serious egg on their face.

No one is going to take them seriously if they ever decide to sell a brand again in the future.



It's all about the twisties........


25 August 2009

Can't say I see this as anything other than a good thing. Okay GM 'have issues', however Vauxhall/Opel are now making a better range of cars than they have for at least 15 years, and they seem to be getting better all the time.

Like GM I wouldn't trust the Magna deal as far as I could throw it - the Magna part is fine but I can't see Russian backers having even the remotest interest in British jobs or for that matter world class products - the Russian car industry to date is hardly a shining beacon of innovation and greatness and I simply don't trust their intentions (nor, evidently, to the GM board). I also dislike the nature of the German government's meddling with the Magna deal - their interest is clearly self-serving and while I can't criticise that (if I was German I'd be very pleased!), it certainly feels like the UK end of the operation was being lined up to be screwed over.

The Belgian bid seemed more 'comfortable' in so far as there is less weight of suspicion over its long term implications, but they're not motor manufacturers.

So... If Vauxhall/Opel stick with GM I can't see that as a bad thing. GM will be a much smarter and more efficient company for all the pain they're going through, and their European operations should be a valuable part of their 'new world order'. Least bad option or a postively good thing I don't know... but I won't be sad to see the back of Magna and their circus.

25 August 2009

I agree with SDR that this is probably no bad thing. I think it is obvious that GM is deeply unhappy with having to sign away certain IP with the Magna deal, and also Merkel is insisting that GM has no buy-back clause in the deal.

Considering that GM has received 10's of billions in support from the US government, raising another $3/4bn by selling their second most profitable division (after China) makes little sense.

25 August 2009

This is just a game of brinkmanship , GM are just holding out for a better deal . The Magna deal will still happen , shame !

25 August 2009

This is good news

I must say that I always thought that it was odd that GM would sell GM Europe. GM Europe has the experience with small cars, and GM desperately needs this. Selling GM Europe could only have hindered a move to smaller vehicles by GM in the United States.

This news surely must mean that GM is faring better under bankruptcy than anticipated?

25 August 2009

I think if GM keep Vauxhall/Opel it may be the best option all round. The deal with Magna (particularly with Russian involvement in the background) was always a pretty unpleasnt option - I really don't think that the Russian way of doing business is to be entirely open about their longterm objectives and they have proved themselves adept at gaining control by forcing their politically driven agenda on to any "equal" foreign partners. GM have said that Vauxhall's plants in the UK are and will be an important part of their European operations so it would appear that if GM kept Vauxhall/Opel that would be the best option for UK.

Enjoying a Fabia VRs - affordable performance

25 August 2009

It sounds to me like GM have just been stalling for time to get their US house in order, and the talks to sell off GM Europe were just a distraction to look good before the US Govt. when they were begging for billions.

If they really needed a quick sale, they could have sold it to Fiat months ago without having to deal with the difficulties of the two other bidders. By the time Fiat got around to deciding which factories to close, GM would have been long gone with the money.

Presumably the various delays have been the result of GM not really wanting to sell the shop but buying time by arguing over clauses in the proposals...

25 August 2009


GM can not afford to sell GM Europe, the few hundred million they would have recieved is pittance to the intilectual property that is tied up in both Opel/Vauxhall,and the only real option was to sell to RHJ and buy back in a few years time. A sale to Russian backed Magna was suicidal in buisness terms as GM would have lost to many patents and with the German government interfearing with there cash offer to Magna GM felt like a gun was being held to there heads.

GM you know that GME is worth it and to sell to Magna is plain mad, place GME into insolvencey and then the New GM motors can buy back GME from the administrators for silly money.

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week