UPDATE: BAIC Bid For Opel Driven By Interest In GM Technology
07 Juli 2009 - 6:55PM
Dow Jones News
Beijing Automotive Industry Holding Co. Ltd. detailed its
interest in General Motors Corp.'s (GMGMQ) European unit Adam Opel
GmbH - it wants to get its hands on the U.S. automaker's
technologies, including alternative drive trains.
BAIC said in a document outlining a takeover offer that access
to GM's advanced technology was the "key driver" for its bid.
According to the document, GM would have to "license all
alternative propulsion technologies (i.e. hybrid, fuel cells)" to
Opel, including the new company's planned Chinese operations.
BAIC plans to invest $2.25 billion in Opel in China to ramp up
production there by 2015. It wants to expand production in China to
485,000 Opel cars by that date 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.
"Industrialization of a developing country such as China needs
to have access to intellectual property. This is a top priority for
the Chinese government, which has mandated selective industry
leaders such as (BAIC) to invest into overseas companies possessing
extensive (intellectual property), advanced technology, and a
strong (research and development) team," BAIC said in the
document.
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).
As part of its offer, BAIC plans to establish a holding company
for Opel in Germany and would require EUR2.64 billion in
state-guaranteed loans.
BAIC would cut 7,584 staff in Europe, with Germany accounting
for 3,018 of those jobs, which is less than GM had outlined under
its own viability plan.
The Chinese company said it would contemplate closing only
Opel's Belgian plant in Antwerp, but would keep the company's
German plants. It would, however, idle Opel's German plant in
Eisenach for two years and resume production there in 2013 with the
small Corsa model.
Company Web site: www.opel.de
-By Beate Preuschoff and Christoph Rauwald, Dow Jones Newswires;
+49 69 29 725 512; christoph.rauwald@dowjones.com