GM to make Opel insolvent rather than sell it to Magna
By Andrew C., 27 Aug, 2010. 0 Comments
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If General Motors wants to keep Opel and Vauxhall, it will have to come up with $6.1 billion. This figure was presented to the GM's board meeting that sought to decide on a course of action for its European operations, including its financial advisors and KPMG. It is estimated that two-thirds of the amount would be used to keep Opel and Vauxhall running. One-third would be paid to the German government, which has provided a bridging loan to keep the company afloat during the crisis.
There are two bidders for the segment -- RHJ International and Magna International. GM is facing pressure from the German government to choose Magna International, which proposes a plan leading to fewer job cuts. While GM prefers RHJ International, it is now contemplating on holding onto its European operations. A decision may come out this week however reports are coming out that say GM may wait until October before deciding. [via dailymail]
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