The three final bidderes are Canadian car parts maker Magna, Belgian-based investor RHJ International and China's Beijing Automotive Industries. Talks have been stalled after Magna wanted intellectual property and distribution rights in Russia to be included in the deal.
This is something that GM is not willing to compromise on. There is some controversy regarding Vauxhall plants and potential lay offs, Magna promised no plant closing until 2013. RHJ would save plants but may force pay cuts.
"GM is expected to give its preliminary findings on the final bids to the German and other European governments on Wednesday.
Next week, GM is expected to have a recommendation ready on which bid to accept. That will be put before its board and the US Treasury, which has a majority stake in GM." (BBC)
In my opinion this is excellent news, the faster that GM will be able to becomer a leaner and more efficient company the better it is for shareholders. In this case it will mean that the majority shareholder (the US government) will be able to let go of GM sooner than later. GM successfully streamlining itself will also be a strong symbol to the American consumer and the rest of the world that big US business will be able to recover and hopefully be better than before the recession. If GM can focus on new green projects such as the Volt, and eliminate the high level of overlap in their product lineup they may once again become a substaintial force to rekon with, all without having to give massive discounts to entice consumers.
http://news.bbc.co.uk/2/hi/business/8158569.stm
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