Shanghai car-maker SAIC makes approach for Opel/Vauxhall

[Sprint XR8]

Shanghai-based SAIC has requested a sale document from General Motors (GM), the stricken US car-maker, which has warned that it may file for bankruptcy in an effort to ensure its survival.

Commerzbank, the German banking group, is orchestrating the sale process on behalf of GM, which is to establish a new subsidiary comprising Vauxhall and Opel, the German car manufacturer. A new investor would be invited to acquire a controlling stake in the company, with GM potentially retaining a minority interest.
Vauxhall employs about 5,000 people in Britain at its plants in Luton, Beds, and Ellesmere Port on Merseyside.

Efforts to sell a stake in the new Opel-Vauxhall company will be complicated by separate negotiations taking place with a number of European governments, including in Britain, about State guarantees worth up to €3.3bn. SAIC's interest will prompt questions from union officials about the security of jobs at Vauxhall. The Chinese car-maker acquired the assets of MG Rover, which collapsed four years ago, when it merged with a domestic rival.

Geely Automotive, the Chinese company which owns a stake in Manganese Bronze, the maker of London's black cabs, has also requested the information from Commerzbank.

The sale will exclude Saab, which GM is attempting to sell separately, and the European sales operations of Chevrolet.

Other interested parties include at least one consortium of private equity firms, although many financial buyers have lost their appetite for investing in the industry because of the travails of Chrysler, the Detroit car-maker which is owned by Cerberus. GM declined to comment on the process.

The auction of a controlling stake in the European arm of GM comes amid the biggest shake-up in the history of the automotive industry. Ford Motor is auctioning Volvo, while Daimler last month sold a small stake to an Abu Dhabi-based investor.
http://www.telegraph.co.uk/finance/n...-Vauxhall.html

[Dave_au]

I knew it!

Interestingly though SAIC owned 50% of ssangyong and they refused further funding to that (and hence forced Ssangyong into Receivership in Korea, the onflow being DSI in Albury going the same way).

SAIC would be the buyer for GM Holden if it was split off from GM, SAIC already produces the 'Buick Royale" based on the current statesman for Chinese domestic supply.

[Daymoe]

Its funny how everyone bagged out China for their crappy cars, now they come out of the woodwork and will be taking over everything.

[Paxton]

Originally Posted by Dave_au

I knew it!

Interestingly though SAIC owned 50% of ssangyong and they refused further funding to that (and hence forced Ssangyong into Receivership in Korea, the onflow being DSI in Albury going the same way).

SAIC would be the buyer for GM Holden if it was split off from GM, SAIC already produces the 'Buick Royale" based on the current statesman for Chinese domestic supply.

These guys own MG (Rover) as well.

DSI is owned by Chery. The Chinese are very cashed up, and are not only buying companies, but are buying know-how. Whether this deal actually goes ahead is another matter.