The German state of Thuringia, which is helping finance Opel operations, strictly opposed a plan by Beijing Automotive (BAIC) to take over the carmaker using EUR2.64bn (US$3.69bn) loaned and guaranteed in part by the German government, a report said on Tuesday.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
According to a non-binding offer from BAIC, the Chinese carmaker would temporarily cease production in Opel’s Eisenach plant in Thuringia until 2012, rendering all of the staff out of work for years but still on the company’s payroll.
“The BAIC offer is completely out of the question,” economics minister Juergen Reinholz told Reuters on Tuesday.
“Germany has made it clear that state loan guarantees will only be offered if all plants are kept open. Even a temporary closure is not an option.”
He said he continued to view Magna as the favourite to acquire control of Opel.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
