Thursday, July 09, 2009
GM confirms Chinese bid for Opel
General Motors has confirmed a bid from Chinese firm Beijing Automotive Industries (BAIC) for Opel.
Opel, GM's European arm, was separated from its parent firm and temporarily placed with a trust fund before GM entered bankruptcy.
A deal with Canadian car parts firm Magna International to take over Opel has been agreed but not finalised.
Several bidders have shown an interest in buying Opel, including BAIC, but GM has only confirmed the Chinese bid now.
"Its very common if we get bids from other companies during the process" said GM.
It added that the Magna deal was near completion.
Several Chinese firms have been looking to buy western car marques. Rover and MG are already owned by the Nanjing Automobile Corporation (NAC), and Sichuan Tengzhong Heavy Industrial Machinery is hoping to acquire the Hummer brand.
Closely watched
The Opel deal has been closely watched because of its implication for jobs.
Opel employs a total of 54,500 workers across Europe, with 25,000 based in Germany.
The German government promised the firm 1.5bn euros (£932m), including a bridging loan, to help boost finances until the Magna sale is concluded.
Under the Vauxhall brand, the firm employs 5,500 UK workers and has plants in Luton and Ellesmere Port. There have been worries that UK workers will suffer sharp job losses.
DATED: 09.07.09
FEED: AW
