BAIC's effort only to give GM leverage in Opel deal

GM takes a further step to divest Opel brand by saying it may sign non-binding agreement with RHJ International SA and Beijing Automotive Industry Holding Co as a fallback to a proposed deal with Magna, according to Bloomberg, citing informed sources.

But insiders say RHJ and BAIC are only needed to give GM some leverage in dealing with favored bidder Magna, though the saying sounds a little bit harsh.

"Magna definitely wants to reach an agreement and (Russian Prime Minister Vladimir) Putin wants one too, so there's a considerable commitment and a lot would have to happen to cause a collapse," IHS Global Insight analyst Christoph Stuermer was quoted by Reuters as saying. And he is convinced a deal will be reached.

Now BAIC is holding talking in Europe with GM. The automaker is indeed very serious about its bid, as it once expressed. But its wish runs contrary to GM and Berlin government's wish.

"I think these talks with BAIC are more in the spirit of 'if Magna fails' - I don't hear anyone, anywhere inside GM thinking they are not full steam ahead with Magna," a source at GM said bluntly.