DETROIT – The Financial Times reports GM’s talks to sell part of Opel to Magna have hit a snag. The FT says Magna’s Russian partners want access to GM’s global technology so they can build Opel’s in Russia, which GM isn’t too keen to see happen. Also, GM wants a clause to be able to buy back some or all of Opel.
RHJ International, a Belgium-based investment firm related to Ripplewood has improved its offer to buy Opel, paying more attention to saving jobs in Germany, a critical political issue determining who will get part of Opel.
GM is backing out of the NUMMI joint venture with Toyota, an assembly plant in California that both companies shared for over a quarter of a century. The plant built 340,000 vehicles last year, including 150,000 Toyota Corollas, 120,000 Toyota Tacoma pickups, and 70,000 Pontiac Vibes. There had been discussion of rebadging the Pontiac Vibe as a Chevrolet, but GM decided not to do that. Instead, GM is using its bankruptcy to get out of the joint venture.
Ford announced it will increase production in the third quarter this year. According to the Detroit Free Press, the company will build 15,000 more cars and 10,000 more trucks than originally planned. Ford cites growing consumer confidence, reduced rate of jobless claims, and the new cash for clunker bill as reasons to increase production. Whenever a company announces production increases before it releases its latest sales, that’s a good sign.
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