GM’s failure to decide on a buyer for its European operations appears to be stoking anger in Germany.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
GM’s board convened to discuss the sale on Friday, but no decision was taken on which of the two bids – from Magna and RHJ International – that it would accept in principle and refer to Opel trustees in Germany.
GM Europe’s official statement on Friday’s meeting was notable for its brevity: ‘The GM Board of Directors met today to discuss options for Opel. No decision was taken.’
GM’s board has reportedly deferred a decision pending more information about the German government’s position on financial support.
German Chancellor Angela Merkel – who last week voiced her continuing support for the Magna proposal – expressed her regret at GM’s failure to choose a buyer for Opel at the weekend. She also said that a decision was urgently needed.
“I regret that a final decision wasn’t made, but I hope it will happen soon, because both for the workers and the economic situation at Opel, we urgently need a decision,” she said in an interview with German ZDF television .
“The conflict of interest could be that we think Magna has made a very good offer … which makes GM a minority shareholder in the whole set-up, and there may be voices at GM … who’d prefer that this minority shareholding wasn’t so marked,” she said.
Opel labour leader Klaus Franz vowed to take ‘spectacular measures’ if GM does not make a decision.
“We have run out of patience,” Franz, Opel’s works council chief, told Deutschlandfunk radio. “We have been calm so far, listened diligently and made comments, but that is over now. If nothing changes from General Motors’ side by the end of this week, then we will be active, and there will definitely be spectacular measures from us,” he said.
GM is believed to favour RHJ as more attractive and easier to implement. But Germany has an interest in Magna’s bid because it appears to contain greater protections against job losses in Germany. Federal elections due next month have helped to push German politicians towards the Magna bid which is widely perceived as better for retaining jobs in Germany.
Both bidders want to cut around 10,000 jobs at Opel. In all 25,000 jobs would be at stake in Germany if Opel were to fold altogether.
The German government is also linking future state aid to the Magna deal.
German Foreign Minister Frank-Walter Steinmeier said in a statement he had telephoned his US counterpart Hillary Clinton to press Berlin’s case.
Steinmeier “emphasised that after several months of intensive negotiations, the time had now come for a decision,” according to a statement issued by the foreign ministry.
“The workers at Opel deserve clarity and a credible prospect for the future,” the statement added.
He called for a decision “as quickly as possible that safeguards the future of all Opel factories and as many jobs in Germany as possible.”
GM advisers cautious over German-backed sale
