Magna Deal for GM's Euro Operations Souring?
June 30, 2009
Although it has for some time enjoyed a preferred-bidder status to buy Adam Opel AG and the European operations of General Motors Corp., the grip of Canada's Magna International may be slipping.
The Financial Times
reports GM is weighing a restructured offer from Belgian holding company RHJ International after detailed negotiations with Magna and its consortium partners became snarled by new conditions.
The Magna-led consortium includes Russia's second-largest automaker, GAZ, and the FT reports the group's offer to GM includes conditions that allow access to certain GM technologies, some of which GAZ seemingly intends to wield for Opel-based vehicles built in Russia.
Either because of or separate from the issue, GM also reputedly wants a clause enabling it to buy back some or all of Opel.
As is often the case, the German labor-political coalition also appears to be exerting influence on the situation. The RHJ-led group may now be gaining momentum because of promises to minimize workforce reductions in the coming restructuring of Opel and other related automaking operations. And the chairman of the German government trust managing the sale expressed a desire for GM to be less concentrated on a single bidder.
Opel Ampera concept car photo courtesy of GM
Posted by Bill Visnic at 1:01 PM under Business , Companies , GM , News | Comments (3) | digg this | Seed Newsvine
Might there be some security issues with Russia gaining access to GM technology? I'm aware that some military hardware is produced by one of the divisions.
Posted by: billddrummer | June 30, 2009 at 3:04 PM
If the buy back clause does exist, that could be the turd on the wedding cake.
Is GM mandating exclusivity in a buy back, with a cherry pick option (buy the "good Opel"/lose the "bad Opel")
Posted by: fulcrumb | June 30, 2009 at 9:44 PM
What a JOKE!! GM:Conditions to buy back OPEL? They need to pay first what they owe the American tax payer.
Posted by: iskch | July 01, 2009 at 8:01 AM