Opel sale in doubt… again

Article by Christian Andrei, 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:


Login or Create new account to add a comment!


Mitsubishi is now officially part of the Renault-Nissan alliance after Nissan took over the Japanese car company recently. We know a lot has been happening in the car industry, but...
by - October 24, 2016
Driving the newest 2017 BMW 5-Series (G30), Clive Owen (Closer, Children of Men) returns to his role as “The Driver”. In this latest installment, what initially starts as a simple...
by - October 24, 2016
Many had wished that a Lamborghini Huracán Superleggera would somehow make a surprise debut at the recently held Paris Motor Show. Sadly, not a single Lamborghini appeared anywhere in sight....
by - October 24, 2016
Aston Martin and Red Bull Racing teamed up for the first time in creating what looks like one of the most ferocious beasts in history. The British car manufacturer has...
by - October 24, 2016
German premium carmaker Audi is reportedly planning to buy back around 25,000 Audi Q7 SUVs powered by its 3.0-liter V6 TDI engine in the United States. The buyback should compensate...
by - October 24, 2016