GM Unsure Who's Better for Opel

Opel's search for a new father will last longer than expected and we got this from the gazillion reports on the matter we rolled out every once in a while. Such an example is today's news that GM's new board of directors are delaying a decision of choosing the favored Opel bidder, waiting for the two suitors, RHJ and Magna to improve their offers.

But a decision to pick one of the two as the favorite bidder will take longer, a GM spokesman told Autonews. German representatives earlier this week demanded both Magna and RHJ to improve their bids but have not clearly mentioned what are the sections to be revised.

GM's chief negotiator John Smith said GM and Germany will not make a decision on Opel's future today and refused to provide a deadline for finding out the next Opel owner. "If you're asking me to select one bidder, no," Smith told reporters when attending a meeting with German, Magna and RHJ representatives.

Earlier reports indicated that Magna is favored by some German officials who said it submitted the best offer Opel could get. On the other hand, General Motors backs RHJ whose offer is easier to implement, as Smith last month said.

"The bid from RHJI is completed and would represent a much simpler structure and would be easier to implement. It would require less monetary participation by the government and would keep our global alignments solid, while still creating an independent Opel/Vauxhall organization in Germany. This remains a reasonable and viable option to be considered as the very difficult issues around the Magna negotiations continue to be worked," he said.