The day before General Motors Corp.'s bankruptcy sales hearing is set to begin, rumors and speculation about its involvement with Adam Opel GmbH and Toyota Motor Corp. (NYSE:TM) have bubbled again.
Although the press had reported that GM's agreement with Canadian auto parts maker Magna International Inc. (NYSE:MGA) was more or less a "done deal," now the Financial Times is reporting that the companies have hit a snag, and GM may be in talks with either private equity firm RHJ International or Beijing Automotive Industry Corp. In fact the London-based paper says GM and the PE firm are close to signing a new memorandum of understanding. However, the leaked news -- if true -- could simply be a GM bargaining chip to get better terms from Magna and its partners. Evidently, the crux of the negotiation problems involves GM's concerns over sharing intellectual property with Magna's Russian partners, notes the FT.
Meanwhile, on the other side of the Atlantic, GM also no longer wants to share. The Detroit automaker reportedly announced it would no longer participate in the New United Motor Manufacturing Inc. join venture with Toyota. The Fremont, Calif., production facility, which employs some 5,400 workers, was responsible for producing Toyota Corollas and Pontiac Vibes, which is slated to be discontinued after the 2009 model year. Toyota reportedly may try to entice General Motors to keep the JV operating by offering GM the Prius, according to a Bloomberg report. Given GM's high hopes for its Chevrolet Volt hybrid, the refusal of Toyota's offer is not overly surprising. - Matthew Wurtzel
See story about Opel talks from the Financial Times
See statement about Nummi from GM
See story about the Prius from Bloomberg
See GM Dealwatch
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