In Stunning Twist, Solar Energy Company Makes Offer to Buy Piece of GM

GM news of the day: SolarWorld, the Germany-based maker of solar photovoltaic systems, has unveiled plans to take over the German factories of the Detroit automaker's troubled Opel unit. The goal: to convert the cash-starved Opel into "Europe's first green automobile maker," focusing on creating the next generation of fuel-efficient, low-emissions vehicles.

The announcement has "stunned investors in Germany," said CNN.

Meanwhile, A spokesperson for GM has called it "pure speculation:"

Opel is not for sale.

But as SolarWorld CEO Frank Asbeck told Reuters:

It's not a gag...It's a serious offer.

In an interview with Bloomberg Television, he added:

This is a new industrial revolution and it's going to impact the auto industry. We can inject new spirit into the company.

Interestingly, Opel has already worked on GM’s planned electric car, the Chevrolet Volt. SolarWorld has said it "would aim to restructure Opel's product range toward electric and hybrid-drive vehicles as well as models that combine electric drives with combustion engines."

The automaker -- Europe's fourth-largest -- has been part of GM since 1929. Just days ago, it announced that it is seeking about $1.25 billion in aid from the German government, due to its parent company's financial woes.

And so SolarWorld, Germany's third-largest solar company, released its takeover plan. In it, SolarWorld has asked GM to hand over Opel’s four German factories, its German research center, the Opel brand and $1.25 billion dollars. In return, the solar company has said it would invest $350 million cash in the takeover and raise $947.4 million in bank loans.

As part of the proposed bid, SolarWorld has also asked for a complete separation of Opel from GM. All said, it’s not exactly a lucrative deal for GM. And so concludes Forbes:

Chances are GM will reject SolarWorld's offer.

While that's true, it's worth mentioning that two years ago, SolarWorld surprised markets by taking over the solar activities of Royal Dutch Shell for 100 million euros -- which it says have now become profitable. And it must be said, the fact that a solar energy company has made a takeover play for a piece of an ailing US auto giant has to be, at the very least, a sign that we are entering an era of change in the world energy economy.

Update, 11/20/2008: SolarWorld CEO Frank Asbeck has told Germany's Deutschlandfunk radio that Opel "must be freed from GM," that he's serious about acquiring the company, and that he has detected mixed signals from GM over the matter.

More, via Reuters:

I see a need to overhaul our manufacturing sector. Just like we have seen in the alternative energy area, the auto industry must be overhauled. That means we need to build cars of the future -- electric, hybrid engines, this can't be left to the Japanese.

This is already in the heads of the developers at Opel, but they must be freed from the restraints of General Motors.

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