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CeWeekly
Weekly analytical newsletter on the Baltic States, Central Europe, Germany and the Balkans (also available in Polish as BEST)

 

No 31(43)
CeWeekly

2009-09-16

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No 31(43) | 2009-09-16

Analyses

  • On September 11 another stage in the war of nerves between General Motors and the German government , in progress for a few months now, ended. It concerned the fulfilment of conditions of the preliminary agreement of May 2009 and General Motors' agreement to sell off 55% of shares in the German car company Opel. The offensive of German politicians forced General Motors (GM) to announce that the majority of shares in Opel will be taken over by Germany's favourite - the consortium of the Canadian-Austrian parts supplier Magna and the Russian state-owned bank Sberbank. Although the decision is not final and binding, it has been enthusiastically received by Chancellor Angela Merkel and Opel's workers. It has however caused considerable controversy in the country and abroad. The German government will have to explain itself to the opposition about the final terms and conditions of Magna and Sberbank's takeover bid which are shrouded in mystery and justify public aid provided to Opel plants in Germany to some EUcountries and the European Commission (EC).

  • The Russian car industry is undergoing serious economic problems caused by fierce competition from foreign companies and a deepening global economic crisis. The Russian authorities do not want to allow the marginalization of domestic car makers. However, the measures taken to date (the customs and loan policies) have proven ineffective and consequently the market share of Russian cars has been systematically falling. For this reason over the last year the authorities have decided to improve the condition of the car industry, mainly through cooperation with foreign investors but trying to maintain a strong influence of Russian shareholders in such projects. The planned takeover of Opel by an investor from the Russian Federation (RF) and gaining through this access to the German car maker's technology is part of this strategy.