Foundry Daily News

China Beijing auto fails in bid for GM Opel

Reuters reported that China's Beijing Auto intellectual property issues were behind its failure to reach an deal with General Motors over its Opel unit.

General Motors' European business said it had agreed to continue detailed talks with both Magna and RHJ International on its German unit Opel, but did not mention Beijing Auto, which had also submitted an offer. It said that "In the negotiations over intellectual property, we have been in constant communications with US General Motors."

The company, quoting an unnamed spokesperson said "Regrettably, both parties failed to reach agreement on issue."

Beijing Auto did not mention in the statement what are the next possible steps after the end of its Opel bid. But sources told Reuters this week that the Beijing city government will fully support a bid by the company for Ford Motor's Volvo car unit if Beijing Auto failed in its quest Opel.

Beijing Auto, controlled by the Beijing government, aims to more than double its annual vehicle sales to 2 million units by the end of 2015 from merely 771,639 units in 2008.

Youtube Linkedin Xing