Monday, July 20, 2009

At a glance: Opel suitors

Monday, July 20, 2009

The bulk of Opel job losses will be outside of Germany

Would-be buyers of General Motors' Opel business have until later on Monday to lodge plans for the firm's future.

Magna International is favourite to buy Opel, which includes Vauxhall in the UK, but RHJ International is manoeuvring to try to make a successful bid.

They will each present their official plans to GM - but much has been reported about what they are likely to contain.

MAGNA INTERNATIONAL

Who: Austrian-Canadian car parts maker, in a consortium with Russia's Sberbank and Oleg Deripaska's truck firm Gaz.

Financial details: Has so far offered 750m euros for 55% of GM Europe, and already handed over 300m euros of emergency funding. Thought to want 4.5bn euros from German government in state aid. Under its plans, 10% of the new company would be owned by Opel employees; GM would keep a 35% stake in the company.

See GM production centres in Europe

Plan for Opel in mainland Europe: German officials said in May that Magna's plan envisaged some 2,600 job cuts in Germany, with between 7,500 and 8,500 going elsewhere in Europe.

Plan for Vauxhall: Has reportedly promised to keep open both UK plants - at Luton and Ellesmere Port - until 2013, but with no guarantees beyond that.

Strategy overview: Wants to use Opel to make an aggressive push into the Russian market.

What it might do: According to a Russian newspaper report, Magna would want to sell Opel cars under its own brand and make any changes it wished to Opel designs, as well as use Opel technology for new models. Reportedly it would use access to new technology to help Russia revive its domestic automakers, and may demand rights to Opel's intellectual property.

RHJ INTERNATIONAL

Who: Belgium-based financial investor, backed by American private equity firm Ripplewood.

Financial details: Will pay 275m euros for a 50.1% stake in Opel, according to a document seen by Reuters. The RHJ plan requires 3.8bn euros in government guarantees.

Plan for Opel in mainland Europe: Just under 10,000 jobs to go. Will keep German factories open, though believed to be planning to ask workers to take a pay cut in return for shares in the group.

Plan for Vauxhall: Few details, though is understood to have pledged to retain Vauxhall's two sites.

Strategy overview: Production cutbacks, pay cuts for staff as well as the job losses.

What it might do: Says it wants to build up an independent European brand with Opel. Employee representatives have voiced worries that RHJ's aim may be simply to sell Opel back to parent GM.

BEIJING AUTOMOTIVE INDUSTRY CORPORATION

Who: Beijing Automotive Industry Corporation is China's fifth-largest car producer. It makes Hyundai cars under contract for the South Korean company and is Daimler's partner in China.

Financial details: Will pay 660m euros for a 51% stake in Opel, and would require 2.64bn euros of loan guarantees.

Plan for Opel in mainland Europe: Reports suggest BAIC would cut 7,500 jobs in total, with the majority going in Germany, Spain and Belgium.

Plan for Vauxhall: Job cuts would be focused primarily on mainland Europe rather than the UK.

Strategy overview: The company would use the Opel brand to make a big push in China.

What it might do: Reports suggest it would initially import revamped Opel models to sell in China, creating a widespread network of dealerships before building a factory to produce cars locally.

0 comments:

Post a Comment

 
International News. Design by Pocket