Beijing Automotive Submits Offer for Opel
July 4, 2009 by Stephen Kersey
Filed under Business
Beijing Automotive Industry Holding Co. has submitted an offer for General Motors Corp.’s Opel division. The Chinese company’s bid gives the automaker more options in case their negotiations with Magna fail.
Image: Flickr
Ontario-based Magna International Inc. was selected by the German government a few months ago as the preferred bidder for Opel. Magna is Canada’s largest auto parts manufacturer. Though the talks between GM and Magna continue, they have be slowed due to disagreements concerning the rights to use GM’s technology.
The German government is backing the rescue of Opel, providing a $2.1 billion (1.5 billion euro) loan to keep the division afloat until the sale is completed.
Friday in Munich, Germany Deputy Economy Minister Jochen Homann said that General Motors is “right to have a second or third option” for selling Opel.
Source: Bloomberg
