Car manufacturers and the iPhone generation

543 More

Earning the right to be successful

531 More

Knowledge is power

607 More

Selling cars – it’s all about timing

847 More

Truemag

  • Home
  • About
  • Advertise
  • Archives
  • Contact
  • Subscribe

GM still confident of Opel-Magna deal

General Motors is ‘reasonably confident’ that a deal to sell Opel to Magna International and Sberbank will be signed this week despite a warning by the European Union that the proposed sale might breach state aid rules, Fritz Henderson, GM’s chief executive, said in an interview on Monday.

‘The German government is in dialogue with the EU, and that’s kind of in their job responsibility code, if you will,’ said Henderson. GM, meanwhile, is now working to finish the remaining items in its negotiations with Magna and to work with the German government on terms of the deal’s financing.

Henderson said keeping Opel was one of GM’s fallback plans if necessary, but said the best option was to close the deal with Magna. As for other potential buyers of the asset, he said ‘there is no one else out there’.

‘We’ve had a number of exhaustive discussions with our board on the deal, the rationale for it, and the need to support the Magna transaction,’ he said. ‘If facts fundamentally change, we would go back and consult with our board. But right now, we’re spending all of our time trying to get the Magna deal closed.’

Neelie Kroes, the EU’s competition chief, threw the sale into disarray on Friday when she said in a letter to German Finance Mnister Karl-Theodor zu Guttenberg that Berlin’s financial aid for the spin-off appeared to be conditional on Magna and Sberbank winning control, and thus could violate the bloc’s antitrust rules.

A spokesman for the German government trust managing Opel said on Monday that it had based its decision to approve the sale to Magna and Sberbank purely on economic grounds.

He said that it was up to the German government to clarify any concerns with Brussels. ‘We expect that the process will not need to be restarted,’ the spokesman said.

The European Commission said that it had seen a copy of a letter sent on Saturday by Germany’s government to GM and the Opel trust assuring them that the ?4.5bn of government aid for the deal was not dependent on Magna and Sberbank being the winner, and was available to all bidders.

RHJ International, the other shortlisted bidder until GM chose Magna in September, on Monday ruled out renewing its interest. ‘RHJ has absolutely no plans to revive its Opel bid,’ a spokesman for the Brussels-based investment group said.

Source: Financial Times

Oct 21, 2009MTI
  • GM cancels Magna deal
  • GM rethinks sale of opel to Magna
  • Spanish Opel workers reach deal
  • Germany defends Opel deal
  • Magna deal for Vauxhall/Opel could be under threat
  • Magna still favourite for Opel takeover
  • Peugeot-Citroen third quarter sales disappointWarranties - it pays to check the details
    You Might Also Like
     
    Car sales utopia – here’s to the future
     
    Used car prices – it’s just a guide
    MTI
    11 years ago Manufacturers, News31
    Most viewed
    Top 100 UK Dealer Groups
    38,661 views
    The car sales process and the “9 point plan”
    10,749 views
    webuyanycar review – They will buy any car but beware of the asterisk
    5,428 views
    Most commented
    Car sales and the power of silence…
    25 Comments
    Car dealers still not prepared to play the “we buy any car” game
    23 Comments
    A Traders Tale – Part Four
    22 Comments
    Win a pre-loaded Ipod Shuffle!
    19 Comments
    Bargain of the Week – StreetKa 1.6i Luxury
    14 Comments
    Bridal Hair Berkshire
    Fox Body to 2018 Mustang Parts
    and Accessories
    About MTI

    Motor Trade Insider
    is written by people working actively in the motor trade for people on the inside and people on the outside.

    Our aims
    Build a bridge between consumers and the trade, create Interesting and informative content, break down barriers and create better understanding, expose bad practices and rip-offs and promote outstanding products and service.
    Have something to say?
    We are always looking for experienced writers who can write good original quality posts on motor-trade-insider.com. Please contact us if you would like us to consider you. Make sure you give us details of your own blog or a link to some articles you have written.
    2017 © Motor Trade Insider
    Truemag theme by StrictThemes