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GM's European Sale Still Not Finalized

Part of General Motors bankruptcy resolution is to sell its two European factories, Vauxhall in the UK and Opel in Germany.

Despite the urgency, and many months after the initial expressions of interest closed, they still can’t get the deal across the line, even though there are two final bidders, RHJ International from Belgum and Magna, a Canadian car parts group.

The latest turn in this ongoing saga is an increased bid from RHJ International.

RHJ International said it will offer 300 million euros (approx $510 million), an increase of 25 million euros, for its 50.1 percent stake of GM Europe and reduce the guarantees it is seeking from European governments with GM plants from 3.8 billion euros to 3.2 billion euros.

However, even after this further sweetener, Magna still remains the favoured bidder in the eyes of the German government, despite reservations from GM that this Russian influenced consortium could syphon German Opel technology to their Eastern European car plants.

And so the saga drags on. We’ll keep you posted as soon as it reaches a conclusion.

In the meantime Holden in Australia continues to promote its cars, in particular the new small Cruze, unaffected by these procrastinations from its parent company.