GM still hasn’t reached a decision about Opel’s future |

Last Friday, a lot of people were expecting to hear GM’s decision on Opel sale, but the company’s board announced that they haven’t agreed yet on their European arm’s fate. According to Reuters, there’s a little war going on between the two potential buyers, Magna International, on of the world’s largest automotive suppliers and Brussels-based financial investor RHJ International.

Magna has the main advantage of being backed by the German government, who is prepared to provide 4.5 billion euros ($6.4 billion) in state aid to make the deal go through. The government is willing to do that because Magna announced that they’re planning on keeping a large part of the 25,000 workers currently employed by Opel in Germany.

On the other hand, GM would prefer RHJ International as Opel’s buyer, because the deal would have a buy-back option for GM and they’re also concerned about Sberbank and Russian car maker GAZ (Magna’s partners in the deal) using the GM/Opel technology to target the growing Russian auto market.

However, according to an unnamed German official close to the negotiations, talks between GM and the German government will continue early next week and hopefully a decision will be made soon.

[Source: Reuters / Via The Torque Report]

Post tags : germany, gm, magna international, Opel, rhj international