Opel Update: GM Snubs Germans' Magna Love, Only Not Right Now

Robert Farago
by Robert Farago

“The other solution is one where I can only say this is something that isn’t playing a role in the negotiations so far.” In other words, Economy Minister Karl-Theodor zu Guttenberg ain’t gonna let GM keep Opel. “Germany, which has provided 1.5 billion euros ($2.2 billion) in loans to keep Opel afloat,” Bloomberg reports, in a common-laden style that just begs to be interrupted by attribution, “is pushing GM to accept a bid by a group led by Magna International Inc. Advisers to the U.S. carmaker, which failed to decide on a buyer for Opel at a meeting last month, have recommended the board consider seeking aid from other European governments to retain ownership of Opel, a person familiar with the discussion has said.” Sure, other EU members will rush-in to help GM keep Opel; they’re dying to piss-off the Germans to prop-up the nationalized automaker’s foreign empire. GM’s take?

Reuters reports GM has decided not to sell Opel to Magna/Russia, but won’t name equity boys RHJ International as the winners until after the German election—so as not to embarrass Chancellor Angela Merkel before the German elections (September 27).

Meanwhile, Merkel is busy talking-up the Magna bid. But that might just be her pre-election public stance. Reuters says GM’s board of directors will teleconference today to discuss the future of Opel. Why, God alone knows. Choosing a winner between RHJ, Magna and themselves before the end of the month would be beyond imbecilic.

Robert Farago
Robert Farago

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  • Akear Akear on Sep 01, 2009

    Maybe GM will again be forced to actually engineer their own cars. If you cannot do that basic skill maybe GM should not be in the car making business.

  • Obbop Obbop on Sep 01, 2009

    Is that a combined effort to sell cars and harems to mid-east sheiks?

  • Gimmeamanual Gimmeamanual on Sep 01, 2009

    The phase "drop dead gorgeous" has really moved down market...

  • ZoomZoom ZoomZoom on Sep 01, 2009

    Whoohoo! Uh oh, wait a minute...oh my God, GM killed those girls! To dgduris: Thank you for the reference to the Robert Palmer songs. I had never really appreciated those videos for their.. "artistic talent." 2009-1986 = 23 years. I wonder how some of those ladies have been holding up...

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