State-owned Beijing Automotive (BAIC) faces long odds in its bid to buy Opel, as China remains wary of firms taking over foreign automakers, according to influential Chinese magazine Caijing.
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The government’s cool attitude toward such outward investment in the auto industry was the main reason Geely Automobile Holdings’ interest in Ford’s Volvo cars was shot down, Caijing, citing unnamed sources, said, according to Reuters.
Caijing on its website said BAIC could only get its foot in the door if a deal between General Motors and preferred bidder Magna were to fall apart.
BAIC and GM China officials would not comment to the news agency on the story.
Earlier, GM Europe president Carl-Peter Forster told a Sunday newspaper that Magna had a “considerable” advantage over rival suitors for Opel since the two sides only had to clarify details, adding he was “extremely confident” that a far-reaching agreement had been reached.
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By GlobalDataCaijing said a crucial BAIC consideration in its bid for Opel was taking control of its intellectual property.
With Opel’s technology, BAIC would be free to build Opel cars in China, the world’s largest auto market and one of its fastest growing, but it is also one of the few bright spots for GM, however, and BAIC’s plans to build a plant there would put it in competition with the US firm.
Despite such concerns, GM was growing increasingly attracted to BAIC’s offer, the Wall Street Journal reported, citing a source close to GM, Reuters noted.
GM was “becoming more enthusiastic about potentially striking a deal with Beijing Auto,” the paper quoted the person as saying.
