General Motors weigh up Magna bid

A group led by Canadian car parts maker Magna may buy General Motors' money-losing European arm Opel, according to reports.

However, it is thought that General Motors' new board is seeking guarantees that Opel's technology won't be used in Russia to compete against GM's Chevrolet.

Last week the board weighed up bids for Adam Opel GbmH from a group led by Magna International that includes Russia's state-owned Sberbank, as well as one from GM's preferred bidder, Brussels-based investor RHJ International SA.

Industry analysts say the GM board has legitimate concerns about GM's global small and midsize car technology being used by in vehicles produced by Russian car maker OAO GAZ to compete with Chevrolet.

GAZ is likely to benefit from the deal due to its links with Magna and Sberbank.

As the long wait over the future of thousands of Vauxhall workers in the UK continues, the Chancellor Alistair Darling has recently pledged Government support for the car industry.

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