Currently, General Motors’ new viability plan spread, its American brands are going on a corporate diet – slimming down to just Cadillac, Chevrolet, Buick and GMC with Pontiac and Saturn. Meanwhile, Saab is just leaves Opel/Vauxhall among the U.S. and European brands. Early this May, GM confirmed that it is on the lookout for potential buyers for Opel.
From the latest source indicate that some investor are interested in buying a stake in Opel is from the Chinese bidders. However, the talks are ongoing even whoever the buyers are. GM CEO Fritz Henderson was told that these discussions continue through April and will continue into early May in a news conference today.
The deal are about an an investment of at least €500 million in direct equity, though the amount required for a controlling stake would likely be set higher. From the source, Fiat and BMW are not involved in the sale process. GM CEO Fritz Henderson was made a statement that confidentiality agreements have been signed with six groups interested in buying part of Opel confirmed the process. Meanwhile, the revelations by German government officials have named Fiat and Magna as among the many potential buyers.
GM said that itself still isn’t out of the weeds and its latest viability plan that bankruptcy is still an option unless a large enough portion of its debt is converted to equity by current bondholders.
