Currently reading: GM may not sell Opel/Vauxhall
Sources claim GM will raise funds to keep the firm

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.”

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daddy 3 25 August 2009

Re: GM may not sell Opel/Vauxhall


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.

disco.stu 25 August 2009

Re: GM may not sell Opel/Vauxhall

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...

ordinary bloke 25 August 2009

Re: GM may not sell Opel/Vauxhall

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.