Opel, RHJ or Bankruptcy

The battle for Opel is far from over and, up until now, the only foreseeable casualty is the German car manufacturer itself. The disagreements between the German government and still Opel's owner, GM, may push the company into bankruptcy. At least this is what a report posted by Bloomberg said over the weekend.

Magna, who is favored by the German government and Opel's unions, does not have the support of the company's trust, who would rather see Belgian holding RHJ at the helm. According to the source, the five members of the trust board are so keen on RHJ that they would rather push Opel into bankruptcy should RHJ's offer be rejected.

"The only plan that offers a perspective for the Opel plants in Germany is Magna's," Dieter Althaus, state premier of Thuringia where one Opel plant is based was quoted as saying by Autonews. This statement is basically the punch line of Germany, who holds the keys to billions of euros in government aid.

According to German newspaper Bild, GM's CEO, Fritz Henderson was telephoned by German foreign minister Frank-Walter Steinmeie, who warned that government financial guarantees will only be given to a long term investor who will also act to preserve jobs.

Germany's position was made even clearer by Roland Koch, the state premier for the state of Hessa, where Opel has its HQ, who said there will be no German taxpayer money available for RHJ.

A decision is expected sometimes this week, with talks between the involved parties scheduled to begin today.

"The issues under dispute have been resolved," Kurt Beck, the premier of the German state of Rhineland-Palatinate said late last week. "We can decide now, if we want to decide."
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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