Germany to announce Opel decision this week, bankruptcy may still be a better option

According to Chancellor Angela Merkel, the German government is expected to decide on the final bidder for GM’s Opel by the middle of the week. Merkel told reporters that pressure is mounting on as GM’s June 1 U.S. government-imposed deadline nears.

While GM will have the final say on who the bidder will be, the German government has a huge say in the decision since it is likely to provide billion of euros in loans and guarantees.

As reported last week, there are three main bidders including Fiat, Magna International and Belgian holding group RHJ International.

Separately, Germany’s Economy Minister Karl-Theodor zu Guttenberg said that all three bids for Opel have shortcomings and a bankruptcy filing might still be a better option for the brand.

– By: Omar Rana

Source: Reuters / Detroit News