Germany: Time to Start Sweetening the Opel Offers
Bidders for Opel need to bump up their commitments to win control of GM’s European arm, Germany’s economic minister tells Automotive News [sub]. Karl-Theodor zu Guttenberg’s announcement came shortly after meeting with Fiat CEO Sergio Marchionne in Berlin. Coincidence? Nein. Fiat has been looking at acquiring the Opel operations along the lines of its Chrysler takeover: financed by desperate governments rather than the automaker itself. “There’s no favorite,” says zu Guttenberg. “Everyone knows that improvements are still necessary.” And as incentive, zu Guttenberg is still floating the possibility of an Opel bankruptcy. If bidders don’t “make credible commitments to preserve German jobs and showed a willingness to assume greater risks,” Germany will allow Opel to fail. After all, what government would hand over an automaker being kept alive with tax money to a foreign firm with a public-money dowry on top? Only America, apparently. Still, the threat could be losing its impact as Germany is also anxious to decide on a bid offer this week. In the spirit of compromise, Fiat is now saying it would accept only €6 billion in German government loan guarantees instead of the €7 billion previously requested.
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Wow, and the news keep coming in. The government advisors regarding Opel dismiss all three offers. Especially the Magna offer seems to be problematic. According to "insiders", if Magna would get Opel, Opel would be insolvent from day one. Fiats offer is apparently hardly better and the offer by RHJ isn't even seriously considered anymore. In the meantime, some mysterious Chinese company has made an offer (The "Handelsblatt" says it's BAIC) who apparently doesn't need as many government loans as the others and who gave a guarantee that no factories in Germany would be closed...for two years that is... It seems like insolvency it is...
And it just keeps on giving...the ever reliable "Bild" Zeitung has uncovered some internal piece of paper from the German economics minister: "From an economic point of view, a liquidation would lead to a reduction in excess capacity and accordingly to a shakeout." Later it says "Politically, a liquidation cannot be communicated. Alternatively, an orderly insolvency could be aimed for." ...I can see the SPD crying foul here...I love politics, so predictable...
The Germans won't fund a bailout? Like the USA? Who won WWII? Sorry - Greatest Generation
getacargetacheck: That blue Luxus was the one my dad came home with. It had a manual transmission, was a kick to drive. It became my first car in the early 80's. Only lasted ~80k miles before the plugs started to foul. I got 800 bucks from some guy for it who did not bother to take it to a mechanic. Later had an 84 Jetta that drove much the same!