Potential investors in GM’s Opel and Vauxhall have started to submit their buyout strategies.
The German government is handing the takeover bids because it will have to put up billions of euros in loan guarantees though it is the parent company General Motors that will have the final say. Opel’s future is a hot political topic ahead of German elections in September and ministers say they will reach a decision on which offer gets their blessing by the end of the month. General Motors said it was expecting at least three offers – from Italy’s Fiat, the Austrian-Canadian car parts maker Magna, perhaps in some Russian involvement, and the US Belgium holding company RHJ International However Fiat could face money problems. Bidders will reportedly have to put up 650 million euros with GM giving preference to cash bids. But cash strapped Fiat has said it intends to offer assets instead, including its know-how and sales network.