General Motors and the German authorities differ over Opel’s future
THE endgame to decide the ownership of Opel/Vauxhall, General Motors’ European unit, has begun. On Friday July 24th GM is expected to recommend one of the final bids submitted on Monday of three potential suitors to the Opel/Vauxhall Trust. This entity was set up to run the business and administer a €1.5 billion ($2.1 billion) bridging loan from the German government while the parent company was in Chapter 11 bankruptcy.
GM, which left bankruptcy two weeks ago, has undertaken to consult closely with the governments of the countries affected, primarily Germany, which is home to nearly half of GM Europe’s 55,000 employees, but also Britain, Belgium and Spain. Next week it will report its conclusions to its main shareholder, the American Treasury. A final decision on granting one of the bidders exclusivity should be announced before the end of July. …
