China's BAIC To Get Opel?

['Vette Dude]

MUNICH -(Dow Jones)- China's Beijing Automotive Industry Holding has made a concrete offer for General Motors Corp.'s (GM) Adam Opel GmbH unit, a person familiar with the situation told Dow Jones Newswires Friday. The person said BAIC's offer is non-binding.

Canadian auto supplier Magna International Inc. (MGA) is the front runner to take over Opel and wants to clinch a binding deal with GM this month.

In May, GM signed a memorandum of understanding to sell a majority stake in Opel and its British sister brand Vauxhall to Magna, whose bid is backed by Russia's Sberbank Rossia (SBER.RS) and auto maker OAO GAZ Group. Opel's powerful labor unions have already voiced support for the takeover.

The tentative agreement with Magna is backed by EUR1.5 billion in bridge financing provided by the German government to keep Opel afloat as parent GM filed for bankruptcy protection in the U.S.

http://money.cnn.com/news/newsfeeds/...0_FORTUNE5.htm

[davidlane]

Additional article, more info:

http://www.autonews.com/article/2009...307039975/1131

[mbukukanyau]

gm would be insane to give it to china

[Road Kill]

I feel that if Magna gets it there is a chance GM could get it back some time in the future. If it's the Chinese it's goodbybe forever.

[redimpss5]

Better them than us maybe?

[cire_1wb]

If GM can work out a deal with Magna to keep the Opel brand out of the U.S. and China, then I think they should stick with Magna. This arrangement would still allow GM to borrow Opel products for Buick in these 2 markets. I view Opel as a credible source for smaller Buick products. Without access to Opel in these 2 markets, I fear GM might be tempted to stuff rebadged Chevrolet clones into Buick's lineup. I know Fritz Henderson has stated that he isn't fond of rebadges, but GM has had a tendency to fall back on the practice every time they have made any similar claims. Buick has a lot of potential to generate profits for GM if GM can properly manage the brand with well executed products and effective marketing.

[chinamonty]

Excuse me but did you guys read what has been written. Magna is getting the money from the Russians.
I trust Chinese much more than I would trust Russians.

[adplusone]

Originally Posted by chinamonty

Excuse me but did you guys read what has been written. Magna is getting the money from the Russians.
I trust Chinese much more than I would trust Russians.

the lessor of two evils...

[Brenie]

Neither of them are exactly your best mates.

[SimonDavid]

Is GM trying to spin this out until after July 10 then they emerge from bankruptcy and reject all offers?

Or is that too smart for GM?

[Dr. Show-Me]

With China's history of theft of intellectual properties, I fear that China buying Opel would give them direct access to decades of engine and chasis development that would allow them to start building competitive vehicles in 5 years, instead of ten or fifteen years.
It would be almost as bad as giving them Voltec technology for nothing.

[megeebee]

Originally Posted by Dr. Show-Me

With China's history of theft of intellectual properties, I fear that China buying Opel would give them direct access to decades of engine and chasis development that would allow them to start building competitive vehicles in 5 years, instead of ten or fifteen years.
It would be almost as bad as giving them Voltec technology for nothing.

Well, if a Chinese company buys a majority in Opel they certainly have access to whatever might be there. How is that "theft"?

[Dr. Show-Me]

That is not "theft." I am combining thoughts, one, China's history of theft of intellectual properties, two, their desire to produce cars worldwide, and three, they are far behind the US and Europe. This would give them quick access to advanced products, production techniques and suppliers.

[Pinnacle]

Opel is staying in Canada

[63GrandSport001]

well we need someone with money to buy Opel, beggars can't be choosers.