Germany threatens GM to sell Opel to Magna

• Source: Global Times
• [14:21 July 16 2009]
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The German government Wednesday threatened the new General Motors Co, saying that it might withdraw its offer of state aid if GM doesn't sell Opel to Magna International Inc.

German politicians pledged to offer a $6.3 billion loan to the Magna, a Canadian-Austrian automotive supplier.

A person close to GM said the carmaker's deal with Magna in late May was "a shotgun wedding" under political pressure, as national elections will be held September 27.

GM can't complete a deal without Germany's aid and approval, German officials pointed out.

China's Beijing Automotive Industry Corporation (BAIC) offered more cash and was seeking less government aid than other bidders, but the Chinese company has made clear that its main interest lies in transferring Opel technology to Chinese car plants. Now its bid for Opel seems like it is losing its luster.

Agencies and Shi Jierui contributed to this story