Beijing Automotive proposes $2.25b investment in Opel

Beijing Automotive Industry Holding Co (BAIC) plans to invest US$2.25 billion in General Motors’ (GM) European Opel unit to increase production capacity in China by 2015, the Wall Street Journal reported. According to documents obtained by Dow Jones Newswires that detail the Chinese company’s takeover plans, BAIC would expand production in China to 485,000 Opel cars by 2015 and also build a network of 400 dealerships over the same time period. BAIC has offered US$922.6 million for a 51% stake in Opel. GM would retain the remaining 49%. Under the terms of the proposed takeover, GM would be required to license “all alternative propulsion technologies” such as fuel cells and hybrid technologies to Opel, including Opel’s Chinese operations. Canadian auto parts supplier Magna International has already signed a memorandum of understanding to acquire a majority stake in Opel.