BAIC to submit detailed bidding plan to GM for Opel

Jul. 2, 2009 (China Knowledge) - Beijing Automotive Industry Holdings Co Ltd (BAIC), one of China's major auto production bases, is likely to submit a detailed bidding plan to General Motors Corp on the possible acquisition of its Opel unit within the next few days, a person close to the situation said on Wednesday, Dow Jones Newswires reported.

Foreign media reported that BAIC earlier held talks with GM about the possibility of a bid. The Beijing-based auto maker last month reportedly gained access to troubled Opel's financial data and offered more attractive terms than Canada's Magna International Inc.

RHJ International SA, another bidder for Opel, is also still in talks with GM over the acquisition. Magna, whose bidding offer is backed by Russia's Sberbank Rossia and Russian auto maker GAZ, still appears to be the front runner.

In May, BAIC expressed interest in buying a stake in the Opel unit and in the rest of the U.S. auto maker's European operations.

BAIC sold 366,000 vehicles in the first four months of this year, representing a year-on-year growth of 21.5%. It aims to sell more than 2 million vehicles in 2009.