Solar Energy Firm Makes $1.2bn Bid for Opel

While General Motors strives to find a way to revamp its sales and re-become the world's largest car manufacturer, its German brand Opel received the most surprising takeover bid it would ever imagine: solar energy firm SolarWorld today announced it has made an offer of one billion euros (1.26 billion dollars) for GM's Opel. But more importantly, in case the deal goes through, the German-based solar energy company plans to found the “first green European automotive group” especially focused on environment-friendly vehicles and fuel-efficient engines.

Terms of the deal make the transaction almost impossible, especially if taking into account that SolarWorld demands General Motors to pay compensation of 40,000 euros per Opel worker, which would total approximately one billion euros, exactly the amount of the total investment. Basically, General Motors would receive 1 billion euros from SolarWorld but would have to pay all these money back to the German firm in compensation payments.

"I could not be more serious," SolarWorld boss Frank Asbeck told AFP. "We would not make this offer otherwise. "Do you know the story of David and Goliath. Size has never been a decisive factor,” he added, pointing that even if his company is much smaller than Opel, it has the financial power to purchase the carmaker.

According to AFP, SolarWorld would offer 250 million euros in cash and 750 million euros in bank credit facilities, with the German solar energy company demanding four Opel auto factories and a key R&D center in Ruesselsheim, Western Germany. In addition, SolarWorld mentioned that Opel should completely separate from General Motors, in order to avoid any financial problem the US giant may experience.

General Motors recently said that Opel is not and won't be for sale in the near future but, taking into account the difficult period it has, the US-based company may consider a more realistic offer.