The_Opel_Decision_Verge - The Opel Decision Group 5 Verge...

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The Opel Decision March 16, 2012 Group 5: Verge The main issue with the”GM: The Opel Decision” case study, was that GM had just come out of one their worst bankruptcy ever. They had no choice but to do major restructuring of the organization in order to stay alive. As a giant organization it had a large presence in the auto-industry around the world. They had a stake in Europe’s auto company, Opel (a German company), which was their “loss-making arm.” With the help of the US government to help bail GM out of the recession, the deal was that the money given to them was only to restructure their US plants. GM was forced to make a decision to let go some of their stakes at Opel. With this decision, it opened the doors to many potential bidders to become a majority stakeholder. Just before GM was to file bankruptcy, 3 bidders had popped up wanted to take Opel from US’s hand: Fiat (Italy), Magna (Canada), and RHJI (Belgium). The US was leaning more towards Magna, a Canadian auto-parts maker, to take over as they made a fair bid. However, the German government saw a slight flaw to GM’s preference for Magna. They felt that the fair bid made by both parties could also apply to other potential bidders as well. The 3 bidders (Fiat, Magna, and RHJI) had their own strategy of running Opel. Each of their strategy was crucial of how GM were to make a decision of whom to sell their majority shares too. The Opel company was founded in Germany in 1862. The founder, Adam Opel,
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This note was uploaded on 03/22/2012 for the course BADM 318 taught by Professor Mitra during the Spring '12 term at British Columbia Institute of Technology.

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The_Opel_Decision_Verge - The Opel Decision Group 5 Verge...

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