German government believes GM still wants to sell Opel
By Andrew C., 27 Aug, 2010. 0 Comments
GM Logo
After engaging in talks with General Motors yesterday, the German government said that GM still wants to sell Vauxhall/Opel. A German official has been quoted as saying that GM's management board "had made it clear" it is still interested in a buyer. Recently, reports have come out that GM plans to hold onto its European operations, instead of selling them off to either Magna or RHJ International.
Selling to either bidder is complicated because Magna wants to have access to GM's patents and the German government is not in favor of a sale to RHJ due to greater job losses. The German government has said it will make the terms of its bridge loan harder if GM picks RHJ as its preferred buyer. If GM wants to hold on to Vauxhall/Opel, it must pay back the bridging finance it has already received from the German government. It's believed GM will struggle to do this, as the US government money it has received is ring-fenced and cannot be spent on foreign operations. However, it has been suggested that GM could sell or mortgage its assets in China. [via autocar]
Latest Auto Shows
