SAIC To Buy Vauxhall? Not Exactly, But Close

“Shanghai car-maker SAIC makes approach for Vauxhall,” headlined London’s Telegraph over the weekend. Of course SAIC doesn’t want just the Vauxhall badge, they are interested in the whole Opel/Vauxhall enterprise. What looks like “Opel” through German eyes looks like “Vauxhall” to the British. It’s one and the same.

According to the Telegraph, “Shanghai-based SAIC has requested a sale document from General Motors (GM), the stricken US car-maker, which has warned that it may file for bankruptcy in an effort to ensure its survival. Commerzbank, the German banking group, is orchestrating the sale process on behalf of GM, which is to establish a new subsidiary comprising Vauxhall and Opel, the German car manufacturer. A new investor would be invited to acquire a controlling stake in the company, with GM potentially retaining a minority interest.” Saab and Chevrolet Europe would not be part of the deal. More Chinese interests are lining up:

Not to be outdone, Geely Automotive, the Chinese company which owns stake in Manganese Bronze, the maker of London’s black cabs, has also requested the information from Commerzbank. Probably just to get a peek at the competition.

It’s a long way from requesting a prospectus to the Tipperary of closing the deal on Opel et al. The road is littered with landmines. Various governments need to pony up state guarantees, and there are the nasty details of every light bulb at Opel (ah, and Vauxhall) being mortgaged and the patents held as security by the US government. It remains to be seen whether an engagement of Chinese SAIC would be a hindrance or a benefit.

In the meantime, the Berlin government maintains its ve do nozzhink posture in regards to help for Opel. A lot of talk, no action. The upcoming and decisive September elections turn Opel into a side show, and its workers into pawns for votes. Over the weekend, Franz Müntefering, head of coalition partner and fierce campaign rival SPD, said: “Frau Merkel won’t be able to refuse a government engagement in Opel, if this is the only way to save the company. Too many jobs are at stake.”

According to Automobilwoche [sub], Müntefering made the veiled threat that “Frau Merkel has to consider the fate of the prime ministers of the states where Opel has factories.” They are all members of Frau Merkel’s CDU party.

From Shanghai, the usual ambiguous tones. SAIC is focused on expanding its market share domestically and has no plans for foreign mergers and acquisitions, the China Securities Journal said via Gasgoo. “SAIC, however, will continue to monitor the global auto market and will seek suitable development opportunities,” Chen Hong, president of SAIC said. That’s a definite maybe.

For SAIC, the acquisition makes sense. They might evene be forced to do it. Most of Chinese Buick’s new technology is based on Opel-made platforms, or on Opel/Daewoo developments. If Opel would go down the drain, SAIC would be up the creek.