RHJ

Little is known of RHJ's plans for Opel, though the automaker's Ghent, Belgium, plant might have been a priority for RHJ.

But GM had been leaning towards RHJ, fearing that Magna and Sberbank could siphon off Opel technology for Russia's car industry.

Previously it had offered 275 million euros in cash and requested 3. 8 billion euros in government loan guarantees.

Financial investors are controversial in Germany, where fears have been expressed that RHJ might seek to "flip" its Opel stake quickly.

RHJ aims to shrink production to return Opel to profit and may be open to selling it back to GM at a later date.

The Financial Times says that GM and RHJ could sign a memorandum of understanding over the sale of Opel within just days.

Fiat's Sergio Marchionne had spoken too bluntly about the need to cut capacity in Europe, and RHJ was portrayed as a vulture investor.

But it began due diligence later, and the sale is essentially a two-way race between Magna and RHJ.

RHJ, by contrast, was only interested in turning Opel around, just like GM.

It is encouraging the rival bids from RHJ and China's Beijing Automotive Industry Holding Co.

Beijing and RHJ still have a chance, if the Magna talks blow up unexpectedly.

GM and BAIC declined to comment. RHJ could not be reached for comment.

GM expects to receive improved bids from BAIC and RHJ in the coming weeks.

The belief that RHJ can run a car company is based partly on its ownership of some car component businesses.

"RHJ has caught up very significantly. "

RHJ wants less state aid -- 3. 8 billion euros -- and plans a similar number of job cuts.

Both Magna and RHJ plan to cut around 10, 000 Opel jobs in Europe, or a fifth of the workforce.

RHJ has offered to invest 275 million euros for a 50. 1% stake in Opel, requesting 3. 8 billion euros in government funding.

One frontrunner to buy the 55 per cent stake in Vauxhall and Opel is RHJ International, a Brussels-based investor.