BAIC Wants To Ramp Up Opel Production In China - Document
07 Juli 2009 - 6:07PM
Dow Jones News
Beijing Automotive Industry Holding Co. Ltd. plans to invest
$2.25 billion in Adam Opel GmbH in China to ramp up production
capacity by 2015, according to a document detailing the Chinese
automaker's takeover plan for General Motors Corp.'s (GMGMQ)
European unit.
BAIC wants to expand production in China to 485,000 Opel cars by
2015 and plans to build a network of 400 dealerships by then,
according to the document. The document, which was reviewed by Dow
Jones Newswires, is addressed to GM, dated July 2 and signed by
BAIC Chairman Heyi Xu.
BAIC is offering EUR660 million in equity for a 51% stake in
Opel, with GM retaining a 49% stake.
BAIC's bid is aimed at outpacing Canadian auto supplier Magna
International Inc. (MGA) in the race for Opel.
Magna is the front runner to clinch the deal with GM after it
signed in May a non-exclusive memorandum of understanding to
acquire a majority stake in Opel and British brand Vauxhall as part
of a bid backed by Russia's Sberbank Rossia (SBER.RS) and automaker
OAO GAZ Group (GAZA.RS).
Company Web site: www.opel.de
-By Beate Preuschoff and Christoph Rauwald, Dow Jones Newswires;
+49 69 29 725 512; christoph.rauwald@dowjones.com