Brussels: GM should be allowed to reconsider Opel sale

Neelie Kroes, the head of EU competition, told Germany on Friday that General Motors should be allowed to reconsider the sale of its Opel brand to Magna International and its Russian partner Serbank. Kroes said that there were “significant indications” that aid promised by the government to the New Opel was subject to pre-condition that a specific bidder was selected to acquire a majority of the shares.

She said that “a precondition for aid would be incompatible with EU state aid and internal market rules, reports Automotive News. Kroessaid that GM should be allowed to reconsider the result of the bidding process with assurance from Germany that aid would be available to Opel regardless of the choice of investor.

Just last month GM announced that it is planning to sell 55 percent of Opel to Magna/Sberbank, while it will hold 35 percent and will give the other 10 percent to employees of Opel.

– By: Stephen Calogera