Undergone a procedure of bankruptcy American automobile company General Motors announced it would return to profit of its European Opel division to profit in 2012, reported the British radio BBC. Michigan manufacturer for this purpose will pour 1.9 billion to restructure Opel, which is three times more money than originally announced. Currently, GM has asked the European Commission, which allow the countries in which cars are produced by the mark, to grant guaranteed loans amounting to 2 billion euros. The amount is by 700 million euros less than the previous similar inquiry by the U.S. manufacturer. GM plans over the next 5 years to put 11 billion euros in the development of new models complement the British media. Only this year have provided the prime ministers of eight new models, a new next four. By the BBC noted that the increase in funds provided for Opel, might prove difficult political task.
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General Motors to postpone finalizing the deal to sell the Opel consortium between Magna International and Russian Sberbank, reported in its online blog delegation of leading U.S. automaker for negotiating the sale, John Smith. According to him, Opel deal could not be finalized until the board of directors did not discuss it again at its meeting on 3rd of November. Ten days ago from General Motors announced that the company intends to finalize the deal by the end of last week. “Board of Directors will consider the letter from the Minister of Economy, Germany Gutenberg changes in the proposal of Magna and Sberbank of 9 September,” says Smith. It comes to responding to the Government of Germany on an official request by General Motors, the choice of the Magna is not political. Representatives of European countries in which Opel has assets subjected to sharp criticism of Berlin’s preference to sell the Opel of Magna and Sberbank. Competition Commissioner Neelie Kroes has expressed doubts last week promised state aid to the new majority owners of Opel from the government of Angela Merkel. In a letter to Germany’s economy minister Karl-Theodor zu Gutenberg Euro-Commissar writes that “must be given the opportunity to review the current owners of the election results of the offer in writing stating categorically the German government of that state aid will be granted, regardless of the chosen investor or a restructuring plan.
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The U.S. carmaker General Motors is working on a “plan B” on the future of Opel and a willingness to continue to manage its European division, says the Wall Street Journal. Despite the fact that the company is working on finalizing the deal with Canadian-Russian consortium Magna and Sberbank, problems associated with EU regulations may prevent the deal. Comes to aid of 4.5 billion, which German government grant to help Opel, a step which Community directives prohibited. At the end of last week, European Commissioner for Competition Neelie Kroes sent a letter to the Minister of Economy of Germany Karl-Theodor Gyutenberg in which it was stated that GM should have the opportunity to again review process associated with the sale of Opel. We recall that in September, GM decided to sell Magna 55 percent of Opel, as stocks remaining 35%, while the other 10 remain in the hands of employees.
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Sales of automobile companies Ford Motor, Chrysler Group LLC and Nissan Motor of the United States reported a decline in September was canceled after the program for the purchase of old cars by the government, known as “money for old cars” (cash for clunkers). The decline in sales of Ford was 5.1%, which was more than economists’ expectations and represented the first monthly drop in two months of growth. For its part, Chrysler reported that sales for U.S. consumers fell by 42 percent, while those of Nissan decreased by 7 percent. The The US carbuilder General Motors has not yet published data on its sales last month, but the market expected to fall by 44 per cent. Economists expect sales of Toyota to decrease by 9,7 percent, while those of Honda to fall by 13%. Contraction of the automotive market is fully expected – it became a reality after the previous two months sales of automobile manufacturers were supported by the U.S. the government program for the purchase of old cars to their owners to buy new and more efficient vehicles.
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The Belgian investment holding company RHJ International improve its financial proposal for the purchase of German car manufacturers Opel, owned by General Motors, offering 300 million Euro (about $ 431 million) for 50.1% of the shares of the company, police agency Reuters. The amount is 25 million more than the original price. Thus the Belgian concern hopes to grips with the Canadian Consortium Magna, which is in alliance with the Russian Sberbanka. Representatives of RHJ have confirmed their intentions in writing yesterday, September 1. Moreover, the Belgian candidate who is favored by GM, has requested that only 3.2 billion euros state aid (with EUR 6 million less than the previous application for 3,8 billion euro) and promised to return the state-guaranteed loan in period in 2013 was reduced by one year, states Reuters. Other investment and production plans have not changed RHJ.
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The American car-builder General Motors will increase its production by 60 000 vehicles by the end of the year to meet increased demand resulting from the government program against money for old cars” forward DPA. Production will be increased mainly during the period from September to December as likely in the coming months will boost production in all plants, said General Motors. The company will return to work in 1350 people in the U.S. state of Ohio and the Canadian province of Ontario and will focus on the Chevrolet Equinox, Chevrolet Cobalt and the GMC Terrain.
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If negotiations between General Motors of candidates to buy Opel fails, the famous car company can fall into bankruptcy proceedings, warned in an interview for the Sunday edition of the Frankfurter Allegemeine Zeitung Minister of Economy of Germany Karl-Theodor tsu Gutenberg referred by an agency DPA. Minister ads against attempts by GM to include contracts for the control package and an option to repurchase. “This is inconsistent with our policy now,” argues is Tsu Gutenberg.
Pretenders to buy parent Opel are:
- A consortium between Canadian auto parts manufacturer Magna and Russian Sberbank and the group gas (a major shareholder Oleg Deripaska). The consortium provides for 55 percent of 500 million shares and want government to guarantee 4.5 billion euros;
- Belgian investment fund RHJ International. The Fund is ready to pay 275 million for 50.1 percent of the shares and wants a state guarantee amounting to 3.8 billion euros;
- Chinese automotive Corporation Beijing Automotive (BAIC). Asians are willing to pay 660 million for 51 percent of the shares and want a state guarantee for 2.64 billion euros.
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The Global economy will witness new bankruptcies, though not in such scales as the bankruptcy of the automotive manufacturer General Motors, Reuters agency says to one of the owners of the auditing company Grant Thornton International. Automobile giant, which last week completed the procedure for bankruptcy and now more than 60 percent of its capital belongs to the Ministry of Finance of the United States, promised that he would back the confidence of American consumers will pay the debt to taxpayers. “Sets are chain reaction. We were witnesses of the single, albeit large bankruptcies, but soon will observe cascade of bankruptcies, “said Mike Starr, director at Grant Thornton, one of the leading audit companies. According to him, as a result of the bankruptcy of GM and its suppliers will announce crash. Starr pointed out that such a fate may have the construction sector companies and firms in the services sector with fuel.
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It is expected to sell the most profitable assets to the newly formed General Motors Company, where the governments of the United States and Canada have more than 72 percent participation to end today, said an official representative of the Ministry of Finance in the United States wanted to remain anonymous, cited by Bloomberg. Down GM in Detroit this morning to discuss plans for future operation of the company. There will be new views of the manufacturer of the product and changes in management. It is expected that the company veteranat Bob Luts, who was expected to retire this year, to be held in the managing authority. The transfer of assets to the new company gives the green light to GM to end production of brandove which are emblematic for the company to lay off nearly 6 Hill jobs and close 16 plants. Earlier the company’s CEO Fritz Henderson said it would reduce the management of more than one-third to accelerate decision-making.
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