Opel deal could be completed before the end of this week

Article by Christian A., on August 26, 2010

GM, the parent company of Vauxhall and Opel, will soon decide, together with the German Government, with whom they will close up the deal for selling both brands. The best offers came from Magna International and RHJ Investments , both of them being in the final battle for the contract.

If to win the deal, Magna plans an investment 350 million Euros in Opel needing 4.5 billion Euros in state financial guarantees, while RHJ claims to invest 275 million Euros needing less financial aid than Magna, 3.8 billion Euros.

The business plans are also quite different, as Magna plans for a huge development of Opel's full-scale assembly business, aiming especially the Russian market for a high growth.

On the other hand, RHJ could have only a medium term plan of business that includes returning Opel to profit first and maybe later, when the value of the brand will be considerably higher, takes in consideration the possibility to sell it back to GM.

There is still a problem to settle between making the decision, as GM and Germany are arguing at the moment for whom to take over the two brands.

It seems that the government prefers Magna while GM is more interested in RHJ's offer. By the end of the week the deal should any way come to a conclusion and we'll let you know which bidder won the battle.

Topics: opel, germany

If you liked the article, share on:

Comments

Recommended

More efficient, more power and longer range. This is how we could best describe the electric version of the Volkswagen Golf for the 2017 model year. In terms of efficiency,...
by - February 28, 2017
If you think you’re all ready for the new 2018 Audi S4 sedan when it arrives in the United States this spring, then better make sure that your pockets are...
by - February 28, 2017
One of the executives at Volkswagen tagged in the so-called Dieselgate scandal has pleaded not guilty to a list of allegations surrounding the carmaker’s actions to cheat emissions regulations in...
by - February 27, 2017
When the Crown De Luxe saloon was first released in 1972, it was at that time the most lavish Toyota model available to British customers. Both unusual and exclusive, one...
by - February 27, 2017
The ride-sharing fleet of sharing Lyft Inc. will soon include thousands of specially fitted self-driving Chevrolet Bolt electric vehicles, courtesy of General Motors. If plans push through, Lyft’s clients would...
by - February 27, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries