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GM 'still intends to sell Opel' | |
(about 12 hours later) | |
US carmaker General Motors (GM) has told the German government it is still interested in selling European car firm Opel, according to media reports. | |
The confirmation came from a German government official following talks between the two sides in Berlin, both Reuters and AP have reported. | The confirmation came from a German government official following talks between the two sides in Berlin, both Reuters and AP have reported. |
On Monday it had been suggested that GM may be set to reverse its decision to sell Opel and its UK unit Vauxhall. | On Monday it had been suggested that GM may be set to reverse its decision to sell Opel and its UK unit Vauxhall. |
The two firms that have bid to buy Opel are Canada's Magna, and Belgium's RHJ. | The two firms that have bid to buy Opel are Canada's Magna, and Belgium's RHJ. |
Tuesday's talks in Berlin were held between GM's chief negotiator John Smith, and Germany's Deputy Economy Minister Jochen Homann, plus other members of the government's "Opel task force". | Tuesday's talks in Berlin were held between GM's chief negotiator John Smith, and Germany's Deputy Economy Minister Jochen Homann, plus other members of the government's "Opel task force". |
No official comments were made following the meeting. | No official comments were made following the meeting. |
Last week, the German government said it would lend Opel 4.5bn euros ($6.4bn; £3.9bn) if its favoured suitor, Magna, was chosen to take it over. | Last week, the German government said it would lend Opel 4.5bn euros ($6.4bn; £3.9bn) if its favoured suitor, Magna, was chosen to take it over. |
However, at the weekend, GM postponed making a decision on who should buy the Opel division, leading to the speculation that it may instead wish to hold onto the European company. | However, at the weekend, GM postponed making a decision on who should buy the Opel division, leading to the speculation that it may instead wish to hold onto the European company. |
Broker? | Broker? |
When GM filed for bankruptcy protection on 1 June, it handed over control of Opel to a German-led trust, which will have to approve the final solution. | When GM filed for bankruptcy protection on 1 June, it handed over control of Opel to a German-led trust, which will have to approve the final solution. |
The Opel Trust board has two GM representatives and two for Germany - one for Berlin and one delegate for the four federal states in which Opel has a plant. | The Opel Trust board has two GM representatives and two for Germany - one for Berlin and one delegate for the four federal states in which Opel has a plant. |
There is a fifth "neutral" board member - Fred Irwin, president of the American Chamber of Commerce in Germany - but he has no vote. He may, however, be forced to try to broker a deal, analysts say. | There is a fifth "neutral" board member - Fred Irwin, president of the American Chamber of Commerce in Germany - but he has no vote. He may, however, be forced to try to broker a deal, analysts say. |
GM, once the world's largest carmaker, struck an outline deal with Magna in May, days ahead of seeking bankruptcy protection. | GM, once the world's largest carmaker, struck an outline deal with Magna in May, days ahead of seeking bankruptcy protection. |
RHJ, the other bidder, is a financial group. | RHJ, the other bidder, is a financial group. |
The German government backs the Magna offer because it has promised to cut fewer jobs in Germany, where Opel employs 25,000. | The German government backs the Magna offer because it has promised to cut fewer jobs in Germany, where Opel employs 25,000. |
In July, GM emerged from Chapter 11 bankruptcy with a number of new US government-appointed board members. | In July, GM emerged from Chapter 11 bankruptcy with a number of new US government-appointed board members. |
On Monday, the White House said that President Barack Obama's "view is that decisions made about the day-to-day operations at General Motors should be made by the folks at General Motors". | On Monday, the White House said that President Barack Obama's "view is that decisions made about the day-to-day operations at General Motors should be made by the folks at General Motors". |
However, the German government has called on the US government, which now owns more than 60% of GM, to try to speed up the Opel sale process. | However, the German government has called on the US government, which now owns more than 60% of GM, to try to speed up the Opel sale process. |