Thus, an information has been released from the depths of GM that the American company intends to sign a statement of intentions, which does not require any obligations with the Chinese car manufacturer company BAIC, and also with financial investor RHJ. There is no doubt that its goal is to increase the pressure on Magna in order to secure new assignments. For example, GM has started talking again about one desirable option, which is the possibility of buy-back of Opel, a variant that is accepted neither by Magna, nor by the German authorities. Those who are familiar with the situation at GM – Handelsblatt sources claim that the top leadership of the General Motors cherishes the hope that after the bankruptcy of GM it can restore its former strength, and may again purchase back Opel.

In his turn, the head of the Savings Bank (Magna partner in the transaction) German Gref said on Friday at a meeting of shareholders of the Bank that if General Motors made the new terms of the transaction of Opel acceptable for the Bank, then by the most optimistic scenario, the transaction may be concluded in September 2009. According to him, intensive consultations are currently undergoing with the shareholders fo the auto concern, and an agreement of purchase between Sberbank and the owners of Opel may be concluded in July this year. Meanwhile, Magna, according to the sources of the German media, said the purchase of Opel with the new requirements of GM would not be possible.

Absolute certainty that the transaction between Magna – Opel will take place, does not exist also in the Ministry of Economy of Germany. It is no coincidence that the head of the board of trustees for the trust management of Opel Fred Irwin pointed out in an interview with Handelsblatt that the statement of intent signed between Magna and General Motors is not legally binding and does not oblige to anything, and that new applicants for the purchase of Opel were welcome.

Thus, some extra time is needed in the tugging for Opel. The Chinese delegation from BAIC is continuing intensive study of financial records of the German carmaker in its headquarters in Ryusselshayme and active talks are taking place with the managers of Opel. What may spur them is that another Chinese company – Sichuan Tengzhong Heavy Industrial Machinery Co., may abandon the purchase of brand Hummer from General Motors because of the dissatisfaction of the regulatory authorities of China with the deal, because Beijing is pursuing a policy aimed at reducing energy consumption and manufacturing low-cost, economical cars.

Yet much says in favor of the fact that in the end the choice will be made all the same in favor of Magna, in fact negotiations with the Canadian-Austrian corporation are in a much more advanced stage compared to those with other competitors. Yes, and GM understands that, because of the difficult economic situation of Opel the time to negotiate of the Americans is not unlimited.

The point is that the German government interim loan that is given to Opel, which has millions of dollars in losses every day, will only last until the autumn, insiders believe. And the political apex of Germany is seeking to make a final decision on the Opel before 27 September, that is, before the German parliamentary elections.

The Government of Germany and the authorities of the German lands, where the main businesses of Opel are located, approved the investment plan of Canadian-Russian consortium.
Magna and Sberbank claim for a controlling stake of Adam Opel GmbH, which combines Opel and its sister brand Vauxhall. Under the plan of Magna, General Motors will retain a share of 35% in the Opel, another 35% will have Sberbank, 20% – Magna, and the remaining 10% will be owned by Opel employees.
Capital infusions of new investors in Opel should make about 500-700 million euro. The industrial partner for Opel, as planned, will become “GAS” group. Canadian Magna International expects to complete the transaction for the purchase of Opel by September 2009.

It should be recalled that the German authorities approved the provision for the European Branch of the American auto concern General Motors – General Motors Europe bridge loan of 1.5 billion euros on 1 July this year.
With that German automaker Opel and British Vauxhall will continue to operate regardless of the bankruptcy of the American parent company. In the next five years, Opel plans to increase itsannual sales volume of cars up to 2 million units.

General Motors told the court that its overall debt has reached $ 172.8 billion, that is twice the value of its assets, and it could not undertake a restructuring. This is the largest-scaled of bankruptcies in the American industry.

Restructuring under the leadership of the American state would require the U.S. government $ 50 billion, in exchange for this the U.S. government will receive about 60% GM. The government of Canada, on which territory there are a number of GM factories, will receive 11.7% stake in GM in exchange for loans of $ 9.5 billion. A further 17.5% stake in the health insurance fund will go to the union United Auto Workers, acting on a North American factories GM. Owners of GM bonds will receive 10% of the shares of automakers, since their share can be increased by another 15%.

«The new GM» must occur in 60-90 days, after which the company will get out of court protection from creditors. Basically, the restructuring will bring to a quick sale of unprofitable assets and the elimination of unprofitable brands such as Saturn and Hummer. At least 11 North American factories of GM will be closed. Also, due to a new contract with United Auto Workers union costs for labor will be reduced. About 21 000 members of the 54 000 workers at GM plants in North America will lose their jobs.

As a result of the restructuring the «new GM» should reduce its debt by half and reserve the brands Cadillac, Chevrolet, Buick and GMC in the U.S. market. However, it is clear that as a result of the restructuring the «new GM» will be much smaller than the «old» one.

Almost simultaneously with the GM, Crysler, the third-largest U.S. automaker declared about its voluntary bankruptcy. Italian Fiat will restructure its assets.

Immediate effect from the bankruptcy of the pillars of the American automobile industry will be the sharp decline of its share in the domestic market, which inevitably will take the competitors. Asian companies – Toyota, Honda, Nissan and Hyundai are more likely to do so.