German govt to decide on preferred Opel partner

Tue May 26, 2009 11:38pm BST
 
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* Italian, Canadian, Belgian firms being considered

* Chinese firm makes last-minute bid

(Adds UK wants deal to save UK plants, paragraph 7)

By Madeline Chambers

BERLIN, May 27 (Reuters) - The German government is due to decide on Wednesday which bidder or bidders it prefers as a partner for the Opel unit of struggling U.S. carmaker General Motors GM.N.

Chancellor Angela Merkel's government has been considering offers from Italian carmaker Fiat (FIA.MI), Canadian supplier Magna International (MGa.TO) and Belgium-listed industrial holding RHJ International (RHJI.BR).

In an unexpected twist, Chinese carmaker Beijing Automotive Industry Holding Co (BAIC) emerged as a last minute contender. A spokesman for Berlin's Economy Ministry said the company had submitted a bid late on Tuesday. [nWEA4241].

The global motor industry has suffered acutely from the worldwide economic slowdown. In Germany, the car remains a potent symbol of the country's post-war industrial boom and export-driven growth.   Continued...

 
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