BAIC plans for GM Europe include $2bn plant in China
Wednesday 08 July 2009
Beijing automotive Industry Corporation's €660m (£570m) bid for GM Europe (GME) includes plans to open an Opel factory in China and build a dealership network, but has little detail on the future of Vauxhall jobs in the UK.
BAIC wants to sell 500,000 specially revamped GME models – including the Corsa, Zafira and Astra – in China by 2015. The plan also includes the creation of a network of 400 dealerships. Initially, the demand would be met by importing 60,000 cars a year, but the company intends to spend $2bn (£1.2bn) on an Opel factory in China, to be opened in 2012.
The deal – which would give BAIC a 51 per cent stake in GME and leave the US parent company with 49 per cent – needs GM's agreement to share new technological developments such as fuel cells and pollution-busting hybrids. It also relies on a six-year, €2.64bn loan guaranteed by European governments.
The tentative good news for Vauxhall's 5,000 nervous British workers is that BAIC's plans to cut more than 7,500 jobs appear to have little effect in the UK. as more than 3,000 will go in Germany, nearly 1,500 in Spain and more than 2,000 in Belgium.
BAIC's rival bidders for GME are the Canadian parts group Magna, with the backing of Russia's Sberbank, and RHJ International, a holding company for US buyout group Ripplewood.
The Chinese corporation is a late entrant to the race. Magna was selected as preferred bidder at the end of May, just days before the US parent company went into Chapter 11 bankruptcy protection. But BAIC's simple, two-page document gained little traction next to more detailed proposals from other bidders.
Lord Mandelson, the Business Secretary, is expected to meet BAIC executives for the first time in the near future.
- 2 David De Gea: Manchester United goalkeeper's £29m move to Real Madrid off - because paperwork 'not done in time'
- 3 Pansexual: What is it - and when did the term gain popularity?
- 4 Netherlands to withdraw food and shelter from failed asylum-seekers after just 'a few weeks'
Bono's group has made more money from Facebook investment than from all his music
Nazi 'gold train': Fire engulfs suspected location of vehicle in Poland
Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
Isis releases graphic video showing four Shia 'spies' being burned alive in Anbar, Iraq
A Chinese journalist has appeared on state television 'confessing' to causing the stock market chaos
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Jeremy Corbyn calls Osama bin Laden's killing a 'tragedy' - but was it taken out of context?
Tony Blair attacks Jeremy Corbyn's 'Alice In Wonderland' politics
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
UN investigating British Government over human rights abuses caused by IDS welfare reforms
iJobs Money & Business
£25000 - £30000 per annum: Recruitment Genius: This leading provider of financ...
£20000 - £25000 per annum + competitive: SThree: Are you looking to take your ...
£20000 - £40000 per annum + competitive: SThree: Exciting career prospect for ...
£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...