A RIVAL bidder for the Vauxhall and Opel brands in Europe could be brought back into play – despite Canadian car parts group Magna International being given a clear mandate in May.
Parent company General Motors is undergoing a savage restructuring under bankrupcty protection in America and signed a memorandum of understanding (MoU) with Magna, alongside Russia’s Sberbank, to buy 55% of its European car making business.
At the time, GM said ideally it would not restrict itself to just one preferred bidder, although Magna is believed to remain in pole position. Previous front-runner, Italian car maker Fiat, dropped out of the process after offering no cash in its bid.
However, it is believed that two of the original four shortlisted bidders could make a return to the negotiating table as early as this week, with GM considering signing further MoUs with Belgian industrial holdings company RHJ International and China’s Beijing Automotive Industry Corp. RHJ is understood to have improved its earlier bid, which GM is said to be “taking very seriously”, according to a source close to the talks.
Beijing Automotive is also expected to submit an improved offer for the business, which includes Vauxhall’s Ellesmere Port and Luton plants, employing about 5,000 staff.
The source said: “GM’s negotiating team would love to see if we can get two very solid, definitive agreements sketched out from which to choose.”
Talks could continue until September.
John Fetherstone, union convenor at Ellesmere Port, where about 2,200 staff build the Astra model, said: “It is always better to have a few people chasing after your goods, but the sooner it is all settled, the better.”
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