General Motors was the world’s ultimate multinational. In good times, it sluiced profits from around the world back to Detroit. Now, as the American carmaker approaches its June 1 bankruptcy deadline, its constituent parts are falling into the laps of local governments. The German authorities are trying to save Opel, a local GM brand, and now seems to have a buyer for the company. The cost of saving Opel, however, will be high for Germany and for the European Union.

After protracted international negotiations, Magna International, a Canadian auto supplier, and Sberbank, a Russian bank, look likely to end up owning a controlling stake in the company. The German government, facing a tight election in September, is keen not to allow the Opel marque – a famous old manufacturing company with four large German plants – to disappear, taking thousands of jobs with it. The state is offering €1.5bn in bridge finance to the company.