German Chancellor Angela Merkel and Roland Koch, leader of Opel’s home state of Hesse, were due to meet today (22 May) to discuss the three bids submitted on Wednesday for the General Motors’ division.
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Speaking to German radio before the meeting, Koch said: “I think there is a ranking in which the offer from Magna is closest to the hopes and wishes of many in the German political arena but also the workers.” Magna International’s offer for the carmaker was the most attractive for Germany and rival Fiat’s bid was disappointing, he said.
“The Magna concept focuses heavily on new ideas, new markets and new customers, while the others focus more on rationaliation,” Koch said.
“Not all jobs can be preserved in a new European Opel group, but there are concepts that offer a more interesting outlook for the German sites than others do. Magna’s is one.”
He also described the bid from Belgium-based investment company RHJ International as “very interesting”.
German media reports suggested Fiat’s plan would involve total job cuts of about 18,000, compared with about 10,000 each for Magna and RHJ; Fiat wants EUR7bn (US$9.5bn) in governent funding, while the other two bidders are asking for EUR5bn each.
Although the final decision will be made by GM, the German government’s views will be key because it will be asked to provide loan guarantees.
