German Chancellor blast
August 24th, 2009 by Richard Aucock
GERMAN Chancellor Angela Merkel has accused GM of a ‘conflict of interest’ over the sale of its European division.
The parent company of Vauxhall cannot decide between one of two bids for the European operations – either Canada’s Magna, or Belgium’s RHJ.
Merkel told German TV the conflict of interest was due to Magna’s offer making it a ‘minority stakeholder’ in the new firm.
Some people within GM, she suggested, do not like this idea.
Merkel, and the German Government, prefer the Magna offer, as it will mean fewer job losses in Germany. But, as Car Dealer Magazine reported last week, GM is currently favouring the RHJ offer.
This is because RHJ puts GM intellectual property at less risk.
Expect more news throughout the day, as the US wakes up and digests Merkel’s comments…
Vauxhall: NO decision yet reached
GM sale chief negotiator speaks
Tags: europe, GM, government, Magna, rhj
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