Opel to Keep 300M Euros as Backup Funds

With some voices hinting that Magna might fail to takeover Opel, the German brand is still relying on the 1.5 billion loan it received from the local government. And given the current rumors that the deal won't be closed sooner than September, Opel might be in trouble if no additional funds are approved. But the German manufacturer has a new plan as it intends to use only 1.2 billion euros of the loan and keep the remaining 300 million euros as an emergency reserve.

The German government approved the loan to allow Opel continue operations until it finds a new investor that could inject more money and help it resist on its own.

Separately, Hesse state premier Roland Koch denied recent reports saying BAIC and RJH are still in the race for Opel, emphasizing that Magna is almost the new owner of the German manufacturer.

"Magna emerged as the winner from the bidding process that ended on May 30. Others can only have a shot in the unlikely event that the constructive talks with Magna were to fail," he said in an interview with the Financial Times Deutschland according to just-auto.com.

Fiat's CEO Sergio Marchionne a few days ago revealed that there are some problems in the negotiations between Magna and Opel and he re-confirmed Fiat's interest in the German unit.

“We’re in very active negotiations with several potential partners including Magna, Beijing Auto and Ripplewood,” Chris Preuss, a GM Europe spokesman, was quoted as saying by Bloomberg last month. “I wouldn’t comment at this point on the status of the talks or the specific details of the negotiations other than to say we have very strong interest in Opel from all the parties involved.”