The future of British carmaker Vauxhall hung in the balance as bids to buy its European parent company were expected to be submitted to the German government.
Federal authorities in Berlin will now preside over a nail-biting decision to determine who will take control of Opel, a European division of struggling US group General Motors. At least three offers are expected, according to a GM Europe spokesman and political sources close to the deal. The Italian carmaker Fiat, the Canadian-Austrian car parts group Magna and the Belgium-based investment firm RHJ all signalled that they would throw their hats into the ring , which would entitle them to German government backing.
It remains unclear what plans the trio have for GM's operations in Britain, which include the Vauxhall plant at Ellesmere Port and the Vivaro van plant at Luton, as well as sales staff. In total, GM employs about 5,000 workers in the UK.
Fiat has said it is keen to add Opel to its empire, which would make it the second largest car group in the world behind Toyota. Magna is believed to be interested in conjunction with at least two Russian investors with whom it would hope to reach markets in the former Soviet Union. RHJ is the least known of the suitors.
One German politician involved in behind-the-scenes negotiations said in an interview that an offer by Magna was preferred by regional governments because the company has said it is against closing plants. But the government claims that it has "no favourites" and that the deal is "open-ended".
The government is playing a major role in the decision-making after pledging to provide billions of euros in financial help to any buyer. The bidding cut-off date was set to fit in with a 1 June deadline by which date GM, which employs 55,000 workers in Europe, must restructure and negotiate a deal with its main trade union or face bankruptcy.
Senior cabinet ministers met German chancellor Angela Merkel today to discuss the future of Opel, one of Germany's oldest carmakers.
Opel unions have signalled their unhappiness at the prospect of a Fiat takeover, warning that due to product overlaps, a group led by the Italian carmaker could lead to assembly plant closures in Britain, Germany, Austria and Belgium and to the loss of up to 18,000 jobs.
The suitors
Magna International A Canadian-Austrian car parts supplier. It is interested in Opel, together with Russian investors, including carmaker Gaz Russia
Fiat Italy's biggest manufacturerhas said it would like to add GM's European, Latin American and South African operations to its empire
RHJ International A Brussels-based investment firm started by the founder of Ripplewood Holdings, Timothy Collins
