GM defers decision after German government adds new conditions of loan
24 August 2009

GM has postponed making a decision on who will buy Vauxhall and Opel.

GM's directors met last Friday to discuss the sale, but announced that "no decision was taken".

The race to control Vauxhall and Opel is between the Canadian component manufacturer Magna and Belgian financial group RHJ.

The delay is reported to be down to last-minute conditions to any deal added by the German government, which will provide a £3.9 billion bridging loan to the company that buys Vauxhall/Opel.

The German government has repeatedly favoured Magna's bid as it will result in fewer job losses in Germany, and is reported to be offering more lenient loan terms if GM picks it as the buyer.

UK business secretary Lord Mandelson has been critical of German chancellor Angela Merkel for politicising the bidding contest.

Earlier this week Lord Mandelson said GM needed to look for an "industrial outcome based on the long-term viability" of Opel.

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24 August 2009

bye bye Vauxhall...

25 August 2009

The Financial Times is reporting tonight that GM is looking at a radical alternative plan which looks for support from the US, British and Spanish governments and other investors, rather than from the German government.

IMHO, something like this has been looking more and more likely for a few weeks now; the Germans have simply been deaf to GM's objections to Magna/Sberbank and have comletely forgotten that GM, for all its difficulties still owns Opel/Vauxhall.

If the alternative plan gains any traction, this will certainly add a lot of spice to the German general election which is now only a month away.

25 August 2009

GM do the best thing of all, let Opel/Vauxhall go insolvent then the new GM can rebuy at a lower price and kick the Germans in to touch.If not sell to RJH !.

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