2009 Opel Tigra Illusion (Source: Car and Driver)
2010 Opel Insignia (Source: Jalopnik)
2011 Opel Ampera (a Chevy Volt derivative) (Source: GM-Volt)
Drama over German subsidiary continues
Over the last month and a half GM has offloaded its laggard brands in an effort to revitalize itself as a leaner company. Among the brands it has moved to try to shed are Germany's Opel GmbH and Britain's Vauxhall Motors -- collectively known as GM Europe (along with Sweden's Saab, recently acquired in a separate deal by Sweden's Koenigsegg).
Near the end of May it was reported that GM had accepted an offer from Canada's Magna International to purchase the brands. Reportedly Magna and its partners Sberbank, a state-controlled Russian bank, and GAZ, a Russian automaker, would invest $977M USD in the companies. In return Magna would receive a 20 percent stake, Sberbank would receive 35 percent, GM would retain 35 percent, and Opel's employees would assume 10 percent ownership in their company.
However, June came and went and with it GM's refutation of there being any definite deal with Magna. In June another bidder emerged -- RHJ International, a holdings company which partially owns Columbia Music Entertainment, among other high-profile holdings.
Now the competition has heated up further with Beijing Automotive Industry Holding (BAIC), a Chinese automotive giant, finally offering a concrete bid. The company had been considered somewhat of a dark horse candidate to buy GM Europe, with most writing it off for lack of a solid offer. Now GM officials have confirmed that a major offer from the company is on the table.
Beijing Auto is reportedly offering €660M ($924M USD) for a 51 percent stake in GM Europe. GM would retain a 49 percent minority interest. The deal is an attractive one for GM as it would offer it nearly as much money as the Magna offer, while allowing it to retain a larger stake. A deal with the Chinese firm would also mean that GM would have to share less technology, as opposed to the deal with Magna, which was partly contingent on a tech transfer to Russia's GAZ.
However, a major downside of the Chinese hookup would be more job cuts. Magna had promised virtually no job cuts. The BAIC offer promised no German plants would close, but plans for cuts at Opel's corporate offices, including at its headquarters.
Whichever company or companies win Opel and Vauxhall, Germany is expected to offer €1.5B ($2.1B USD) in loans to aid their recovery. If BAIC wins the bidding war and succeeds in acquiring GM Europe, it will be the second sale of GM assets to Chinese bidders. Near the start of June GM finalized a sale of its Hummer brand to a mystery bidder, which was later revealed to be China's Sichuan Tengzhong Heavy Industrial Machinery Company Ltd.
"If a man really wants to make a million dollars, the best way would be to start his own religion." -- Scientology founder L. Ron. Hubbard
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