Magna looks set to win GM
THE GERMAN government has swung behind a bid from Canadian firm Magna for GM Europe, the owner of Opel and Vauxhall, which is up for sale as its parent company GM looks to sell the division.
Chancellor Angela Merkel said the offer from auto parts supplier Magna was the best solution, disappointing rival bidders RHJ International, from Belgium, and China’s BAIC.
None of the bidders has gone public on how many jobs cuts they would make, but 5,000 positions at GM’s Vauxhall sites in Luton and Ellesmere Port are under threat from the takeover.
Business secretary Lord Mandelson has promised to “fight for every job” at the UK sites.
Berlin has offered €3bn (£2.6bn) in loan guarantees to the eventual owner of GM Europe, sparking fears that German jobs will be prioritised over those in the UK.