BAIC has talks with GM this week

By Shi Jierui

Beijing Automotive Industry Holding Co. (BAIC) is reportedly having talks with General Motors Corp. this week, but BAIC hasn't admitted that the talks are related to buying GM's Opel unit.

The administrative unit of BAIC left for Zurich, Switzerland on June 23, where the office of GM Europe is located, to start meetings with GM officials later this week.

GM has asked BAIC to make a better offer for Opel, to rival the bid from Magna International Inc. Beijing Auto is expected to hand in an enhanced offer.

Until now, Magna is in the lead to purchase Opel, but GM sees little benefit in the deal. GM has asked BAIC and other bidders to make better offers in case the deal with Magna fails.