GM: Opel Fallback Being Negotiated
June 26, 2009
General Motors has a tentative deal for Canadian-Austrian auto parts supplier Magna International for GM's German subsidiary, Opel. But, just in case, GM apparently is negotiating backup plans.
GM may sign non-binding agreements with RHJ International, a Belgian industrial company that originally bid for Opel, and Chinese automaker, Beijing Automotive Industry Holding Co., which assembles Jeep and Hyundai vehicles in China, to take on Opel, Bloomberg News reported.
A GM spokesman confirmed to Bloomberg that Magna, Beijing Auto and private equity firm Ripplewood are among "several potential partners" in talks with GM.
The German government, from which GM is seeking funding for Opel, selected Magna, the preferred bidder. But now Bloomberg reports, quoting unnamed sources, the automaker and Magna are disagreeing about the use of GM's technology and engineering designs. The participation by Russian lender Sberbank's also is causing controversy.
Bloomberg reports GM is concerned that Magna's plans for significant changes to the engineering designs of Opel models would eliminate the cost-saving benefits of sharing parts with other GM brands. Meantime, Magna wants access to future technology such as fuel cells, hybrids and future GM models that go beyond what the company is offering in the deal, Bloomberg reported.
The deals with Beijing Auto and RHJ also look good, as they don't require government loans as the Magna offer does.
Posted by Michelle Krebs at 7:00 AM under Companies , GM , Rumors | Comments (0) | digg this | Seed Newsvine
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