Before we had to go to war against Germany again (just kidding!), news came today that there may be resolution of the General Motors situation in Europe. While European Commission ministers jawed in Brussels, GM got down to it with Magna International and cut a deal on control of Adam Opel and Vauxhall Motors.
All is still tentative (isn’t life in general?), but it looks like the deal would have Magna take a 20% stake in Opel/Vauxhall, GM keeps 35%, Sberbank of Russia gets a 35% slice, and 10% is held aside for Opel employees. Sberbank’s ownership could usher in a role in GM Europe for GAZ, the beleaguered Russian automaker. Fiat apparently gets shut out, eliminating one aspect of its plan for automotive world domination.
The Italian carmaker reportedly is one of the potential buyers for Saab Automobile. The other two bidders, according to news reports, are Koenigsegg Automotive, a Swedish manufacturer of high-performance cars, and The Renco Group, an American holding company.
Whatever happens on the Continent, the day of reckoning is at hand for GM. Some see the giant automotive manufacturer entering bankruptcy reorganization on Sunday or Monday. (If it’s Sunday, that may mean a Chapter 11 filing in Delaware, where the US Bankruptcy Court keeps weekend hours, but I’m sure the bankruptcy court offices in New York City would make an exception for what may be one of the biggest bankruptcy cases in US history.)
Meanwhile, the Chrysler saga is still playing at the US Bankruptcy Court in Manhattan; the company is hoping that after two days of marathon hearings, it could get the bankruptcy judge’s OK for its merger with Fiat today, or someday soon.
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