Chinese BAIC joins bid for GM Europe

CHINA&rsquo;S Beijing Automotive Industry Corporation (BAIC) yesterday offered to invest &euro;660m (&pound;570m) in GM Europe in return for a 51 per cent stake.<br /><br />The state-owned Chinese group&rsquo;s offer is likely to involve plans to expand operations inside China, the world&rsquo;s largest car market. The deal would need &euro;2.64bn of state-guaranteed loans.<br /><br />BAIC would also look to cut 7,600 Opel jobs in Europe, rather than at Vauxhall in the UK.<br /><br />GM wants to sell a major stake in Opel and Vauxhall as part of its restructuring after filing for Chapter 11 bankruptcy in the US.<br /><br />A consortium led by Canadian group Magna and Russian bank Sberbank is the preferred bidder, but GM is still open to other offers.