BAIC Still Looking to Buy Opel

BAIC is probably thinking that GM Europe is playing hard to get when it comes to Opel so the Chinese a few days ago re-confirmed their interest in the German brand, hinting that they agree to discuss with the parent company on the intellectual property rights. General Motors last week announced that it will continue negotiations over Opel with Magna International and RHJ, hinting that BAIC is out of the deal.

"We had a good and thoughtful discussion around the key operating metrics and key issues associated with the three final offers we received on Monday evening", said John Smith, GM's chief negotiator for the sale of Opel. "We have agreed to continue detailed talks with both Magna and RHJI to secure Opel's future."

After a few days, BAIC confirmed the rumors, hinting that it has stepped out of negotiations due to intellectual property issues.

"In the negotiations over intellectual property, we have been in constant communications with General Motors. Regrettably, both parties failed to reach agreement on the intellectual property issue," BAIC said in a statement.

But BAIC is now willing to continue talks with GM, a company official said in a state radio broadcast according to gasgoo.com. BAIC is now a more experienced manufacturer after the negotiations it held with GM Europe so it is now willing to discuss, once again, the possibility to take over the German brand.

"We still believe that Beijing Auto is a very good partner for GM's development in China and we remain willing to take discussions on IPR arrangements a step further," Xu said. "GM was worried that after we acquired Opel and obtained its intellectual property rights, we would impact their interests in China and its relationships with its existing partners."