Magna most likely to win Opel, GM Europe's Forster says

ERJ staff report (AN)

Berlin -- Carl-Peter Forster, General Motors Europe president, believes Magna International Inc. is most likely to win a bidding battle for Opel, but he says that the carmaker could also thrive under the ownership of its US parent.

"Magna is the most likely for me because all conditions have been met, the contracts have been negotiated and the financing is in place," Forster told the Die Welt newspaper.

But he added: "If General Motors can establish worldwide standards while at the same time allowing regional freedom to create cars that work in the given markets, then Opel can thrive under GM."

Magna, a Canadian supplier, and Belgian investor RHJ International have made rival bids for Opel, which GM earlier this year decided to sell because it could not afford to keeping funding the loss-making unit.

Last month, GM's new board asked executives to look at other options besides selling off the German-based subsidiary.

The Wall Street Journal reported yesterday that GM could contribute more than 1 billion euros of its own money to retain Opel, while governments in the UK, Spain and Poland that are home to major manufacturing operations would finance another 1 billion.

From Automotive News (A Crain publication)