Opel sale in doubt… again

Article by Christian A., on August 26, 2010

In an unexpected turn of events, the economy minister of Germany has reopened the auction of Vauxhall and Opel, thereby effectively throwing Magna International's bid into uncertain ground. The German official has announced that Magna only provided them with a memorandum of understanding which has yet to be converted to a final deal.

Since there is no way for them to be certain that the memorandum can be translated into a final agreement they have opened the auction to other bidders in case it does not, although they are keeping their fingers crossed that Magna will push through.

Some however have speculated that this could be an arm twisting strategy by the German government to force Magna to finalize the deal with a low casualty count with regards to job cuts and factory shut downs. Others say that there are better offers that are really being considered.

The two companies that joined the bidding process, Fiat and the Chinese firm BAIC, are currently contemplating further bids.

It was previously agreed that Magna was to purchase 55 percent stake in Vauxhall and Opel at 700 million Euros and has already provide in excess of 300 million Euros of emergency aid to prevent GM Europe from sinking.

Magna has reportedly received an offer of state funding from the British business secretary in exchange for assurance of job security.

Topics: opel, germany

If you liked the article, share on:

Comments

Recommended

Ever since the Regera premiered in 2016, Koenigsegg has been firm about increasing its coverage around the globe. Part of the idea was to ask its employees in Angelholm to...
by - February 21, 2017
There is no harm in admitting that both the conventional and the hybrid versions of the Lexus LC 500 are real stunners when it comes to its exterior styling. Even...
by - February 21, 2017
Jaguar is placing three new Ingenium engines on the F-Pace crossover, XF saloon and XE sedan for the 2018 model year. According to Jaguar’s recent announcement, the updates will also...
by - February 21, 2017
After Volkswagen snagged Toyota’s crown as the world’s best-selling automaker, there’s no stopping the Japanese manufacturer from dominating the hybrid arena. As of January 31st , Toyota’s increasing global unit...
by - February 21, 2017
There is no denying that the performance versions of the Jaguar F-Type and the Land Rover Range Rover are definitely hot – both in terms of looks and road dynamics....
by - February 21, 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