Business secretary questions Magna in a letter to the European competition chief
24 September 2009

Business secretary Peter Mandelson has questioned the viability of Magna’s takeover of Opel/Vauxhall from General Motors.

In a letter to European competition chief Neelie Kroes, which was obtained by the Financial Times, Mandelson said the takeover would be too expensive and open to political intervention.

“We do not believe the case has been demonstrated that the current Magna proposal is commercially the most viable plan,” he said in the letter which was sent on Tuesday.

“Capacity at highly efficient plants in Britain and Spain is planned to be under-utilized, in favour of higher utilization of some of GM's other less-efficient plants.”

Magna plans to cut Opel’s 50,000-strong workforce by 10,500. It will receive 4.5 billion euro (£4.1bn) from the German government in aid, but the European Commission confirmed in a statement it would investigate whether the aid was offered in return for keeping German plants open.

Mandelson urged the commission to urged to "ensure a commercially based outcome rather than one determined by political intervention and subsidies".

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Comments
7

24 September 2009

[quote Autocar]Mandelson said the takeover would be too expensive[/quote]

Yes, but it's using German money not British. If Mandy isn't happy he should have put up the cash in the first place. Germany has the rights to this one.

24 September 2009

Something's not right with this, beyond the usual bentness of Mandelson. Why is he so set against Magna? Isn't Magna's buying partner the GAZ car company(backed by Sberbank), whose owner is Oleg Deripaska, who Mandelson was wined and dined by on board Deripaska's yacht last year off Corfu? Have they fallen out, had a lover's tiff? Why would Mandelson be so against a deal that is in the interests of his acquaintance and presumably friend of one year ago, and to whom he allegedly bent the rules whilst EU Commissioner to allow Deripaska's alumnium company to gain contracts worth billions of euros within the EU bypassing import tariiffs from Russia? Is he perhaps feigning opposition to the Magna/GAZ/Sberbank deal so as to demonstrate he is not in the pocket of the oligarch, Deripaska, so as to bolster his case and credibility against any possible future charges by investigators against him for corruption in his dealings with Deripaska whilst EU Commissioner? He's such a crooked individual I wouldn't put that scheme past him. On the other hand it could just be he and Deripaska have genuinely fallen out and this is now just spite by Mandelson. Safeguarding Vauxhall and its workers woudln't cross Mandelson's mind unless there be some ulterior motive.

24 September 2009

Did you know that when you look at this thread title on the forum homepage it says;

Mandleson hits...Rogerthecabinboy.

Presumably has Brazillian subtitles and an 18 rating.

24 September 2009

There's a good article about this by Gavin Green on the CAR website. Fiat was obviously the way to go for Opel/Vauxhall if the long term prosperity of the company was to be considered. Unfortunately it was a decision made by German politicians looking after their own hides and GM either looking to hold on to Opel or see them fail if they couldn't. Hence Marchionne leaving the talks early and labelling the bidding process a "soap-opera".

24 September 2009

[quote rogerthecabinboy]Something's not right with this, beyond the usual bentness of Mandelson. Why is he so set against Magna? Isn't Magna's buying partner the GAZ car company(backed by Sberbank), whose owner is Oleg Deripaska, who Mandelson was wined and dined by on board Deripaska's yacht last year off Corfu? Have they fallen out, had a lover's tiff? Why would Mandelson be so against a deal that is in the interests of his acquaintance and presumably friend of one year ago, and to whom he allegedly bent the rules whilst EU Commissioner to allow Deripaska's alumnium company to gain contracts worth billions of euros within the EU bypassing import tariiffs from Russia? Is he perhaps feigning opposition to the Magna/GAZ/Sberbank deal so as to demonstrate he is not in the pocket of the oligarch, Deripaska, so as to bolster his case and credibility against any possible future charges by investigators against him for corruption in his dealings with Deripaska whilst EU Commissioner? He's such a crooked individual I wouldn't put that scheme past him. On the other hand it could just be he and Deripaska have genuinely fallen out and this is now just spite by Mandelson. Safeguarding Vauxhall and its workers woudln't cross Mandelson's mind unless there be some ulterior motive.[/quote]

Well said.....

24 September 2009

[quote daddy 3]

[quote rogerthecabinboy]Something's not right with this, beyond the usual bentness of Mandelson. Why is he so set against Magna? Isn't Magna's buying partner the GAZ car company(backed by Sberbank), whose owner is Oleg Deripaska, who Mandelson was wined and dined by on board Deripaska's yacht last year off Corfu? Have they fallen out, had a lover's tiff? Why would Mandelson be so against a deal that is in the interests of his acquaintance and presumably friend of one year ago, and to whom he allegedly bent the rules whilst EU Commissioner to allow Deripaska's alumnium company to gain contracts worth billions of euros within the EU bypassing import tariiffs from Russia? Is he perhaps feigning opposition to the Magna/GAZ/Sberbank deal so as to demonstrate he is not in the pocket of the oligarch, Deripaska, so as to bolster his case and credibility against any possible future charges by investigators against him for corruption in his dealings with Deripaska whilst EU Commissioner? He's such a crooked individual I wouldn't put that scheme past him. On the other hand it could just be he and Deripaska have genuinely fallen out and this is now just spite by Mandelson. Safeguarding Vauxhall and its workers woudln't cross Mandelson's mind unless there be some ulterior motive.[/quote]

Well said.....

[/quote]

You've nailed it I'd say.

The unelected 'Lord' Mandelson will be PM before this government's terms is out, his 'people' are already feeding stories to the media that Brown is going blind and may have to step down......there are dark times ahead for this country and Mandelson will be behind much of it. A spiteful and more vindictive man you are unlikely to meet, as a civil servant I can say his reputation and power reaches far and wide across government.

This creature, and the other creatures in this travesty of a government, are not dead and buried just yet, not by a long way.

25 September 2009

Shades of Volmert :)

[quote plumiestparts]

.

This creature, and the other creatures in this travesty of a government, are not dead and buried just yet, not by a long way.

[/quote]

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