Opel Unions Fret Over BAIC Talk

BAIC offer made to GM has sent shock waves not only within Magna, but through Opel's unions as well. According to Opel union leaders, BAIC is most likely not interested in securing a long term future for the German brand. The unions also doubt BAIC's goodwill, saying that they are not sure the Chinese will keep their word to keep German Opel factories open.

"I have a lot of concerns and skepticism about BAIC because I cannot assess its intentions. The situation perplexes us," Rainer Einenkel, union leader at Opel's Bochum factory was quoted as saying by Reuters.

The Opel union doubt the Chinese company's ability to run such a large operation like Opel. According to Klaus Franz, Opel's top union official, BAIC only set its eyes on gaining access to Opel's technology to build and sell Opel cars in China.

"Just as good musicians need the practice, so do our staff. It is a permanent learning process working in a factory since operations are constantly being improved and optimized," Harald Lieske, union boss at Opel's Eisenach factory added.

As we reported earlier today, BAIC's plan for Opel came into the public eye. According to the company's offer, BAIC is offering 660 million euro for Opel, while asking 2.64 billion euro from Germany. GM will be left with a 49 percent stake in the company and with the prospects of supplying BAIC with technologies and parts until 2015.

Fears of a production shift to China are based on BAIC's plans to build an Opel assembly plant in China and close the one in Belgium.