GM to sell Opel to Canada's Magna

[csv8]

GM to sell Opel to Canada's Magna: source
September 10, 2009 - 10:39PM

US automaker General Motors is to announce the sale of its European unit Opel to the Canadian auto parts maker Magna, a source close to the matter told AFP on Thursday.

Earlier, GM said it would announce at 1415 GMT its decision on the investor taking a majority stake in its European subsidiary Opel.

"Fred Irwin, Chairman of the Opel Trust Board, together with General Motors Lead Negotiator John Smith will announce the decision on the investor in a majority stake in Opel/Vauxhall," a statement said.

This will be interesting !!! The person who owns Magna was a parts designer for GM ,before he started his own company. Better Canada own OPEL than the Arabs.

[King Nothing]

http://www.watoday.com.au/drive/moto...1104-hwnf.html

Holden has welcomed a move by its parent General Motors to abandon plans to sell its European Opel subsidiary.

CAR maker Holden has welcomed US parent General Motors’ announcement this morning that it will retain its European car-making business.

GM announced today that it has pulled out of the sale of its Opel and Vauxhall subsidiaries, citing a turnaround in sales and the European car-making division’s importance in the company’s global strategy.

Holden sells its Commodore large car into Britain, rebadged as a Vauxhall. With the loss of the Pontiac brand in the US erasing about 60,000 sales a year for the Australian brand, the smaller number of sales to Britain have jumped in importance.

Announcing that plans to sell Opel and Vauxhall to Canadian car parts supplier Magna International had fallen through, GM said it had decided it could turn Opel around for a cost of about €3 billion, significantly less than the bid it had received for the European division.

‘‘GM will soon present its restructuring plan to Germany and other governments and hopes for its favourable consideration," GM president Fritz Henderson said.

‘‘... From the outset, our goal has been to secure the best long-term solution for our customers, employee, suppliers, and dealers, which is reflected in the decision reached today,’’ he said.
‘‘This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall's long-term future.’’

GM had been deep in prolonged talks with Canadian-controlled Magna International over the sale of Opel. Magna co-chief executive Siegfried Wolf said the company understood that it was ‘‘in GM's best interests’’ to hold onto Opel.

A spokesman for Holden said the surprise announcement from its US parent meant it was too early to say what the implications were for the Australian division.

‘‘I don’t think (GM’s decision to retain Opel) will make any difference to Holden,’’ Scott Whiffin told Drive today. ‘‘It’s a bit early to be extrapolating it out.’’

Mr Whiffin said it also meant Holden would be able to continue selling Vauxhall-badged Commodores into Britain.

Interesting change

[irlewy86]

Must be hard running a business with the key's to the US treasury

[R-Design]

Does "Hello Opel" = "Goodbye Daewoo"?

A good move either way, Opel is their best Asset.

[Polyal]

Originally Posted by Boss315

Does "Hello Opel" = "Goodbye Daewoo"?

A good move either way, Opel is their best Asset.

In regards to what holden sells here or GM ownership?

Opel do make decent cars.

[R-Design]

Originally Posted by Polyal

In regards to what holden sells here or GM ownership?

With regards to GM's brand portfolio, the rest of it is junk.

Originally Posted by Boss315

Does "Hello Opel" = "Goodbye Daewoo"?

Apparently not:

Originally Posted by Ken Gratton

Holden conspicuous by its absence in the closer relations between GM and GM-DAT

General Motors now owns just over 70 per cent of GM-DAT (GM Daewoo Auto & Technology Co). The multinational giant officially increased its shareholding in the South Korean manufacturer last week, following an equity rights issue approved by GM Daewoo's board of directors back in August.

Of the existing shareholders with an interest in GM-DAT, GM was the only company to take part in the issuance. The other shareholders, Korean Development Bank ('KDB'), Shanghai Automotive Industry Corporation and Suzuki Motor Corporation elected not to subscribe.

GM's increased share in GM Daewoo provides additional capital of 491.2 billion Won -- money which will cover "general corporate purposes", according to a press release from GM. Those purposes will include repayment of maturing debt.

It's good news for GM, which is heavily reliant on its South Korean subsidiary for the manufacture and supply of small-to-medium front-wheel drive passenger cars and the Captiva SUV around the globe. In GM's current situation, GM-DAT can pull up some of the slack left by the still pending sale of Opel. And the Korean company being based in a relatively low-labour cost nation like South Korea will help too.

The question remains, however, what happened to Holden's involvement? When GM-DAT was established near the end of 2002, GM's shareholding in the newly acquired company was reportedly overseen by Holden and the Australian subsidiary held a seat on the board of GM-DAT.

In a press release issued by Holden and dating back to October 25, 2002, the following statement appeared: "Holden also announced it would become the GM shareholder in GM Daewoo Auto & Technology Company (GM Daewoo), the global company created to acquire key assets from Daewoo Motor Company. The US$251 million investment means Holden will hold 42.1 per cent of GM Daewoo common shares."

As recently as June of this year, Holden's erstwhile MD, Mark Reuss, said: "We do hold some of the debt for GM Daewoo" and "I'm not going to get into how much, but it's around 50 per cent".

Given GM in the US can barely wipe its nose without asking consent from the US government, from whence came the funds to increase the shareholding in GM Daewoo? Not Holden, we're told by local PR Manager for Holden, Scott Whiffin. In fact, it appears that Holden's financial tie-up with GM Daewoo -- mentioned by the company's boss less than five months ago -- is taking on all the status of modern myth.

"Holden has no representation on the GM-DAT board," Whiffin told the Carsales Network last week.

"In the wake of the latest equity rights issue, GM's shareholding has increased to 70.1 per cent (other shareholders are KDB 17 per cent, Suzuki 6.8 per cent and SAIC 6 per cent). However, Holden does not own that company and owns no shares in GM-DAT."

It would seem that Holden's former GM Daewoo liability has been transferred elsewhere. If it's to another subsidiary, such as GM China, for example, it would clear a massive liability off Holden's books. It would also inject capital at a time when the local manufacturer must try to retain as many staff -- particularly production staff -- as it can, during the lead-in to local production of the Cruze small car.

An internal transfer from one offshore subsidiary (offshore from the US) to another would leave the US government out of it and could be achieved quickly, with none of the need for due diligence and other accounting/legal procedures normally conducted in a transfer from one company to another.

When asked how the acquisition was funded, Whiffin advised he was not in a position to answer, saying "this is a GM corporate issue".

A question concerning the existence of any obstacles to the transaction, in light of the corporation's Chapter 11 obligations was met with much the same answer.

Seems like Sergeant Schulz is alive and well -- and working in corporate accounts at Fishermans Bend.

http://carpoint.com.au/news/2009/dae...n-daewoo-17241