China's BAIC Still in the Race for Opel

Once again Chinese automakers make the headlines but this time not following a shameless clone that perfectly resembles the appearance of an European car. Fortunately, Chinese manufacturers are again brought into discussion as part of the long Opel saga, as BAIC (Beijing Automotive Industry Corp.) might still have a chance to take over German ailing manufacturer Opel, German Finance Minister Peer Steinbrueck said.

According to Autonews, Steinbrueck issued the statement just after a meeting with members of the German government during whey they talked about the proposals Opel has received from the three confirmed investors, Fiat, Magna and RHJ. The Finance Minister initially said BAIC's interest in Opel was revealed a bit too late as the government was already considering the offers submitted by the three aforementioned potential buyers.

Although it was initially said that GM Europe should pick the next Opel owner this week, media reports indicate that BAIC's representatives might meet with German government officials next week to discuss a potential takeover. Reuters said that BAIC intends to keep all four domestic production facilities open for at least two years with no job cuts prepared for the time being. Additionally, the Chinese manufacturer would inject around 660 million euros in equity.

On the other hand, a new report issued today claims the race for Opel is now down to Fiat and Magna, the two manufacturers who have been often linked with a takeover. While Fiat repeatedly said it would include Opel in an alliance with all its brands and concentrate on European markets, Magna assured the German government that, together with Russian investors, it would maintain German operations and reduce the number of job cuts required by the economic downturn.