German government received 3 bids for Opel today

Fiat, Magna International and the European Opel Dealer Association are all interested

By Alex Ricciuti
May 20, 2009 7:42 PM
Filed Under: Corporate/Financial, General Motors, German, Industry, Opel

Well, in what finally looks to be like positive news for the troubled GM Europe unit, there seems to be no lack of bidders for Adam Opel GmbH.

On Wednesday the German government received petitions from 3 separate bidders looking to buy a stake in German car maker Opel.

The bidder which right now seems most likely to succeed is Fiat, with CEO Sergio Marchionne looking to create one of the world's largest automaker by taking over all of GM Europe, which will include Swedish unit Saab and perhaps even the Chevy Europe brand as well. Fiat has already announced a global alliance with Chrysler, which has recently gone into bankruptcy.

Another interested party is Canadian auto parts maker Magna International. Also, the European Opel Dealer Association has come up with a plan to buy a 20 percent stake in Opel for 500 million euros (680 million US dollars).

Opel is starving for operating funds given GM's current problems and will be receiving bridge loans from the German government in order to keep operating while the government considers which bidders are best for German interests. The German government wants to make sure that Opel factories stay open and that production remains within its borders. One of its concerns with the Fiat bid is that this new global conglomerate will not be based in Germany. Opel employs about 25,000 people in Germany, representing roughly half of GM Europe's total workforce.

Opel will need about 1 billion euros (1.4 billion US dollars) in operating cash over the next month.

Source: detnews.com

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Tags: Opel bailout, GM Europe bailout, Fiat-Opel, GM Europe

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Comments

jandrews90

May 20, 2009 8:32 PM

When can we expect a decision from Opel? Are we talking a couple days or a couple weeks?

Grossmayer

May 21, 2009 12:06 AM

It's not up to Opel but the German government to choose the best bidder.

Razz

May 21, 2009 12:21 AM

I am really happy to hear that Opel will not die because of the bad GM management. Even if right now there is not sure wich one of the 3 bidders will have the big share in Opel, already i have a better image about the car - not being american anymore (in a proximate future). Also for Saab i have the same opinion! Magna is also Steyr (Magna Steyr - the austrian division) ?

hata0101

May 21, 2009 3:56 AM

great! it's a good sign! means Opel has potential & can be much better off the hands from GM's stupid manangement *team*!! i bet if GM put Pontiac on bid like this, NOBODY wants it! especially came with the *bonus* UAW!!!!!

Bristol411S3

May 21, 2009 9:44 AM

What has the German government got to do with this? I can't understand why they are receiving bids and making decisions on ownership. Surely this should be GM HQ?

If the Germans are involved I fear they will put the interests of German workers ahead of the the brands and the GM workers in Sweden,, Spain and the UK.

I favour the Magna bid as I think Fiat is taking on way too much.

Tommy_S

May 21, 2009 10:29 AM

Who's the third bidder? Chinese Chery?

I'm not happy with all the bidders. From what I've heard, Fiat wants Opel's technologies and nothing else. To crown it all, Marchionne wants to make Opel devision the most cheapest and lowest brand in Fiat Group, if so. GAZ and Sberbank have stakes in Magna, so instead of Volga Siber, they will produce Volga Insignia and so on. Russians also need Opel's technologies more than anyone. And Cherry. Well, that'll be only a shame for Opel and its fans.

Bristol411S3

May 21, 2009 11:34 AM

Chery isn't the third bidder. The three are Fiat, Magna and the European Opel Dealer association. Read the article.

And I have no idea where you come up with what you are saying about Fiat. First off, Opel doesn't have any interesting tech -- Fiat has way more advanced petrol and diesel engines. All the EV work is being done in the US. And there is no suggestion at all that Opel would become the bargain basement offering. If anything, if lifts Fiat up a tier, as Opel is more successful in larger car sectors than Fiat.

You're just making stuff up!

Tommy_S

May 21, 2009 11:57 AM

Bristol411S3, from many artciles (in german), such as: http://www.auto-motor-und-sport.de/news/opel-betriebsrat-franz-fiat-einstieg-ist-ein-horror-szenario-1249623.html

Quoting the original: "Auch technologisch könne Opel nicht von einer Zusammenarbeit mit Fiat profitieren. "Es gibt nichts, was Opel von Fiat bräuchte. Die Italiener indes brauchen unsere Entwicklungskapazitäten, unsere großen Motoren und große Plattformen", so Franz. Aus der früheren Zusammenarbeit mit Fiat habe Opel nur schlechte Erfahrungen. "Fiat hat Zusagen nicht eingehalten. Der Technologietransfer war sehr einseitig. Wir konkurrieren in vielen identischen Marktsegmenten um die gleichen Kunden. Daraus konnte damals schon kein Mehrwert entstehen – und wir sehen das auch für die Zukunft nicht.""

You can translate it in google.

Edited by user on May 21, 2009 at 11:59 AM

fast_lane

May 21, 2009 4:33 PM

In response to the article, I don't think the sale would include Chevy of Europe, but rather Vauxhall. And after severing ties(Subaru, Isuzu, Suzuki, Fiat) and selling off brands (Pontiac, Saturn, Saab, Opel), with the Ford doing the same, I'm surprised that GM is holding onto Daewoo. Is it really more profitable than Opel? There has been no mention about the Daewoo division.

trailer

May 21, 2009 5:01 PM

Amongst all, Opel is the best selling and the most attractive, and the most profitable asset of GM for the time being. I am sorry, because being a part of GM was an advantage, it may not seem so today, but on the long run, it has been and it would be. That Detroit a**s took it down, you really need to be talented to do so.

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