GM final 3 bids
July 21st, 2009 by Richard Aucock
VAUXHALL owner General Motors has received THREE final offers for its European car business.
They come from RHJ International, Beijing Automotive Industries and Magna International.
But hadn’t Magna already won the deal? Seems not. Despite an announcement back in May, that Magna had triumphed, the deal is now less of a dead cert.
That’s despite both the German and Russian Prime Ministers going on record to say they prefer Magna. Unions also like the Magna deal.
What’s going on? It seems the Magna deal has soured because it was asking for too much in the key Russian marketplace.
GM was unwilling to meet these demands, concerned that Russian car makers could get hold of the technology. This would see Russian-branded car developed off Vauxhall models.
Now, Magna has compromised, changing the terms of its bid at the 11th hour.
Incidentally, Magna has also made separate stipulations – addressing concerns that technology it’s developed with other car makers could end up in Vauxhall’s hands!
Magna has also pledged not to close any Vauxhall plants in the short term, but didn’t extend this to the longer term.
The process is complicated indeed… But it’s necessary. GM won’t get its American state aid if it doesn’t sell Vauxhall and Opel.
On Wednesday, GM is going to report back to Europe’s Governments, with its initial findings and preferences. By next week, it says it will have decided its preferred bidder once and for all.
Then, finally, we may be a step closer to discovering the future ownership of Vauxhall… but even then, there will be a long way to go. Both the GM board and US Treasury will make the final call.
Should we get on the phone to the BBC again?
By Richard Aucock