General Motors to pick a bidder for Vauxhall and Opel
General Motors to pick a bidder for Vauxhall and Opel

General Motors' board of directors meets on Friday to pick a bidder for Vauxhall and Opel.

Bids made by Magna, a Canadian car-manufacturer or RHJ International, a Brussels-based financial investor could be recommended by the board.

Magna has promised €350 million of its capital plus €150 million in credit to Opel, while RHJ is offering €275 million of its own capital.

GM’s European business has become an apple of discord between the UK and Germany.

Opel provides work for about 25,000 people in Germany. Germany is backing Magna’s bid as she thinks that more Opel jobs could be saved via Magna’s expertise.

On the other hand, England is supporting RHJ International.

UK’s business secretary, Lord Mandelson said the decision by GM should not bear the impact of any country’s political consideration.

It may be noted here that GM has surfaced from bankruptcy protection on July 10, 2009.

Italian car-manufacturer Fiat plus China's Beijing Automotive were also in the race but eventually preferred to quit.

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