Opel swings in the balance
No clear contender in negotiations for GM Opel subsidiaryThe eventual fate of GM German unit Opel remains unclear as a favourable contender in the various options being considered has yet to emerge.
According to press reports, the Opel trust, which has the job of deciding what to do with the company following GM's bankruptcy, is considering various options -- including a declaration of bankruptcy.
A number of parties are interested in buying Opel, but a key factor in any decision appears to be what a buy-out would mean for company employees.
It is reported that the German government, which has offered a US$6.4 billion-dollar bailout loan to keep the operation afloat, is keen that any Opel buyer has a focus on retaining jobs.
Among the contenders are the Belgian investment group RHJ International and the Canadian car parts supplier Magna.
Word is that the German government's -- as well as the Opel labor union and the German states with Opel manufacturing plants -- preferred option is the Canadian group Magna.
GM's chief negotiator -- ongoing Magna negotiations are being complicated by promises made to its Russian backers -- apparently thinks an RHJ takeover would be simpler and easier to implement.
Despite all this, word is that a conclusion -- involving bankruptcy or sale -- will come sooner rather than later.
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