Wednesday, November 04, 2009

General Motors Grabs Opel

General Motors (MTLQQ.PK) or should we say Obama Motors has pulled the rug out from under the Germans by rescinding the Opel Sale. Merkel will be in the White House today and some form of political mumbo jumbo will come out. GM yanked the deal because they are still a drowning man grasping at straws. It is far from certain if GM’s non Opel offerings will make it. So if you are going down why not try to get more life boats.

Merkel has perfect political cover and is now demanding a return of German Tax payer money. Obama has perfect political cover because a supposedly bankrupt entity is trying to maximize value and return funds to the US tax payer.

Magna (MGA)and Frank Stronach probably saw this one coming weeks if not months ago. The Russians are shut out. The Chinese are conspicuous by their absence. Everyone wants to go to China and they have huge amounts of capital. Hmmm Yes Igor follow the money.