GM-Berlin Standoff

As was to be expected, the minor disagreements over the future of Opel between GM and Germany tend to become a problem, as both sides favor different bidders. Whereas GM has a soft spot for Belgian investment firm RHJ International, Germany, through the voice of chancellor Angela Merkel, has already stated their support for Canadian company Magna.

A source familiar with both offers told Autonews that a final bid from RHJ would come as soon as today, with GM "minor issues" away from striking a deal.

"The advantages of RHJ's offer is that it is a much simpler deal, requires less taxpayer money, plans to pay it back quickly and foresees a relatively more aggressive restructuring of Opel," the person was quoted as saying. "They get to set the price, GM can elect to take it or not."

Germany on the other side, pushed by Russia, who partners with Magna through Sberbank, begs to differ. "There are still a number of questions to be cleared up. But the Magna concept offers excellent starting points," said Merkel at a joint news conference with Medvedev. "It offers Opel a chance and also creates the possibility of establishing a strategic partnership in the car sector with Russia."

It would appear that RHJ's offer makes it possible for GM to buyback its Opel stake. The German economy minister opposes such a loophole. "This is incompatible with our views and cannot happen," Karl-Theodor zu Guttenberg told German newspaper Frankfurter Allgemeine Sonntagszeitung.

How do Opel's employees feel?

"A decision by GM and the German federal government for RHJ would be a declaration of war on the employees of Opel. The IG Metall trade union will not support this concept or its bidder," Opel board member Armin Schild said.