Deadline for the final binding bids for Opel
By Andrew C., 27 Aug, 2010. 0 Comments
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Deadline for the final binding bids for Vauxhall/Opel was Monday, July 20. Three potential buyers (Magna, RHJ International, and Beijing Automotive Industry or BAIC) are vying for the win to be decided very soon by GM and the German government. Magna, which was initially favored, is reportedly revising its bid in light of offers from its 2 rivals. Magna is believed to demand for intellectual property rights as it wants to make changes to Opel designs, sell Opel cars under its own brand, and use Opel technology for new models.
Industry analysts say that GM is unlikely to approve this since Russia is said to be trying to snatch Opel's cutting-edge technology and use it for the Russian car market. Magna's bid, which is supported by Russian state bank Sberbank, is committed to build the new Vauxhall Astra at Ellesmere Port and to continue production of the Vivaro van at its Luton plant until 2013.
Magna is in talks with its unions and the UK government citing that the plants there are "vital to the Magna concept." Magna also reiterated its commitment to the UK and the Vauxhall brand. Rather than be drawn into a further bidding war, Russian newspaper Kommersant has reported that Magna will withdraw from talks if its offer is not accepted. [via autocar]
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