On Monday, July 20, 2009, GM Europe accepts the last and final bids for Opel. Really. Definitely. They mean it. GM will evaluate the bids, choose a favorite, and then go on an arduous show-and-tell tour: Germany’s central government needs to be convinced, the states where Opel has plants need to be convinced, European countries where Opel has plants need to be convinced, the EU Commission needs to give its approval. The US government needs to be consulted. And then it’s up to the trustees to say “Ja” or “Nein.” So what will it be?
According to Der Spiegel, GM appears to be predisposed to recommend – you guessed it – RHJ. RHJ will be a tough sell in Euroland. In a separate article, Der Spiegel writes that RHJ vehemently denies any allegations that they would just collect government money, cut Opel down to size and sell it back to GM.
The German government prefers Magna. In its Monday edition, Der Spiegel will report that Berlin has anointed Magna. That decision fell after a presentation last Friday in Berlin. Despite the fact that RHJ needs €3.8b in government guarantees, compared to the €4.5b Magna/Sperbank need, the Magna proposal was deemed as “more coherent” than that of RHJ, as Der Spiegel will quote an anonymous participant in the meeting.
According to the report, GM promised to signal their choice by the end of this week. If GM insists on RHJ, it will be an uphill battle (except in Detroit and DC.) Berlin will “re-evaluate” their bank guarantees. It will drag on and on. Once the September elections are over, all political leverage will be lost.
If they pick Magna, GM will receive compliments for their wisdom and foresight and the deal will be waved through. To Russia.
Der Spiegel »
Source: www.thetruthaboutcars.com
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