Report: GM to sell Opel stake to RHJ, not Magna
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Report: GM to sell Opel stake to RHJ, not Magna
Report: GM to sell Opel stake to RHJ, not Magna
Though General Motors recently signed a memorandum of understanding with Magna International that would see a majority share in Opel go to the Canadian supplier, reports out of Germany indicate that an increased offer from Belgium’s RHJ International is quickly gaining favor.
The Financial Times says that GM and RHJ could sign a memorandum of understanding over the sale of Opel within just days. The paper says that GM and Magna have reached a standstill over access to the Detroit automaker’s technology, which Magna wanted access to in order to please its Russian financiers.
Earlier this month, news had come that GM was still shopping around Opel.
Magna had initially won the bidding war for Opel because it had promised to save German jobs – a sticking point for the German government, which had offered substantial financing. Now, according to reports, RHJ, a holding company, has made an offer that protects more jobs in Germany – and it is not asking for access to GM’s global technology.
The paper says that the offer is being taken “very seriously” and that GM is also open to improved bids from outside companies now that it has become more public as to just what GM is willing to provide beyond a controlling share in Opel.
Reuters says that China’s Beijing Automotive Industry Corporation is expected to make an improved bid and that even Fiat could make another offer despite CEO Sergio Marchionne’s insistence that he will now focus all of his company’s attention on the newly-acquired Chrysler.
Though General Motors recently signed a memorandum of understanding with Magna International that would see a majority share in Opel go to the Canadian supplier, reports out of Germany indicate that an increased offer from Belgium’s RHJ International is quickly gaining favor.
The Financial Times says that GM and RHJ could sign a memorandum of understanding over the sale of Opel within just days. The paper says that GM and Magna have reached a standstill over access to the Detroit automaker’s technology, which Magna wanted access to in order to please its Russian financiers.
Earlier this month, news had come that GM was still shopping around Opel.
Magna had initially won the bidding war for Opel because it had promised to save German jobs – a sticking point for the German government, which had offered substantial financing. Now, according to reports, RHJ, a holding company, has made an offer that protects more jobs in Germany – and it is not asking for access to GM’s global technology.
The paper says that the offer is being taken “very seriously” and that GM is also open to improved bids from outside companies now that it has become more public as to just what GM is willing to provide beyond a controlling share in Opel.
Reuters says that China’s Beijing Automotive Industry Corporation is expected to make an improved bid and that even Fiat could make another offer despite CEO Sergio Marchionne’s insistence that he will now focus all of his company’s attention on the newly-acquired Chrysler.
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Joined: Sep 2004
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From: Irving, TX
I believe that this deal would mean that GM will still have some stake in Opel and still have access to Opel designs. Besides, GM already owns the Epsilon II and Delta II platforms. Future designs and development is something that will be interesting.
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From: CNY
The article in Automotive News also said another sticking point is that Magna wants access to GM's global technology to give to the Russians. The Russians, for crying out loud!!!
Here's the link:
http://www.autonews.com/article/2009...306309967/1193
And the quote:
Why would any real American let American technology find it's way to the Russians?!?
I can't believe this would even be considered.
Remember what I said about Magna in a few other threads about a month or so ago? Are you getting an idea of what kind of company they are?
Here's the link:
http://www.autonews.com/article/2009...306309967/1193
And the quote:
Another sticking point in negotiations with Magna is access to the Detroit carmaker's global technology, which Magna wants to secure on behalf of Russian partners, the paper said. Magna has teamed up with GAZ and Sberbank for the bid.
I can't believe this would even be considered.
Remember what I said about Magna in a few other threads about a month or so ago? Are you getting an idea of what kind of company they are?
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