The German government tonight revealed that it is still holding talks with bidders other than the Magna group for carmakers Vauxhall and Opel — respectively the British and German businesses of America's General Motors Europe.

Canadian car parts business Magna had been previously seen as the winner after Germany struck a preliminary deal with it last month, agreeing a large package of aid to secure an acceptable deal securing local jobs and factories.

The takeover triggered concerns about workers in the UK plants at Luton and Ellesmere Port.
Today, however, the German economy minister Karl-Theodor zu Guttenberg said: “We are still in contact with other investors. [Chinese carmaker] Beijing Automotive Industry Holding Corporation for example, and others I will not speak about here.”

He was speaking after a summit in Berlin with Magna and Lord Mandelson, where the British Business Secretary had attempted to convince Magna bosses not to sack British staff.
Mandelson did not get any such commitments despite offering British taxpayer money in subsidies.

While Magna co-chief executive Siegfried Wolf said “every job loss in the UK would be one too many” he also warned: “At the end of the day it is a very competitive environment.”

Observers felt this left the door open for widespread redundancies among the 5000 Vauxhall workers in Britain. Lord Mandelson said: “We have had very positive talks. We will find a solution that is fair for Britain.”

Magna is leading a Canadian and Russian consortium that has agreed a memorandum of understanding to acquire a 55% stake in General Motors Europe.

Lord Mandelson added: “It is impossible to predict if the memorandum of understanding will translate into final agreement. We hope it will. But, we also have to keep our mind open to alternatives.”

Magna is said to want to cut 11,600 jobs. Fiat is also reportedly interested in bidding although after the alliance it struck yesterday with Chrysler its management is likely to have its hands full already. China's BAIC has been widely touted but it is also looking at other opportunities, including a potential takeover of Ford's Volvo division.