GM Executive Hopeful Opel Sale To Magna Will Be Finalized
17 June 2009 - 3:12AM
Dow Jones News
A General Motors (GM) executive Tuesday said he was hopeful that
a deal to sell the U.S. car maker's German unit Adam Opel Gmbh to a
Magna International Inc. (MGA) consortium would be finalized.
"We're at the start of a process that we hope will bring to an
agreement. We're constantly meeting with Magna to finalize the
details," said Dan Hancock, Vice President of GM Global Powertrain
Engineering.
At the end of May, the German government chose Magna's
consortium over an offer from Italian car maker Fiat SpA (F.MI) and
pledged to provide EUR1.5 billion in bridge financing to keep the
German auto firm afloat following the bankruptcy filing of parent
GM in the U.S.
However, since then the German government has said that it
hasn't closed talks with alternative bidders and Fiat has
reiterated its interest in Opel. Last week, Italian Prime Minister
Silvio Berlusconi said that the Fiat offer for Opel was "still on
the table."
Asked whether there is a chance Fiat might still step in, GM's
Hancock replied: "There are many factors to consider...But our
primary focus now is the memorandum with Magna."
Hanckock was speaking at the official opening of GM's new
engineering research center in Turin, Italy, where Fiat is
based.
The U.S. car maker invested more than EUR25 million in building
the center, from which it aims to develop a new generation of fuel
efficient diesel engines and new advanced propulsion systems, such
as diesel hybrids, which will improve fuel efficiency and reduce
emissions.
-By Milena Vercellino, Dow Jones Newswires; +39 3462332095;
luca.dileo@dowjones.com