General Motors is to press ahead with talks with Magna International and RHJ International for a stake in its Opel business, after throwing out a bid from China's Beijing Automotive Industry Corporation.
The announcement by GM is the latest stage in a long-running saga over the future of the US group's car businesses in Europe. The Opel stake sale has become a key election-year issue in Germany and raised fears about job losses in other countries with GM plants, including the UK.
The Berlin government, which will play a decisive role in the final decision, is backing the bid by Magna International, the Canadian parts supplier, and Russia's Sberbank. In its statement, GM said it had also “agreed to continue details talks” with RHJ International, the Brussels-listed industrial investment group.