BREAKING: BBC says Magna has agreed to take majority stake in Opel from GM
by Chris Paukert on May 29th 2009 at 1:27PM 
According to the BBC News, supplier Magna International has come to terms with General Motors to purchase a majority stake in its European Opel division. While an agreement has been reached between the two parties, the German government – which has agreed to provide financial assistance for Opel – needs to sign off on the matter. Magna and GM have signed a memorandum of understanding that will reportedly help Opel secure some 1.5 billion euros ($2.1B USD) in bridge loans, as well as shore up protections against creditors in the event of a GM bankruptcy.
For its part, Magna will reportedly pour somewhere between 500-700 million euros into Opel, and it plans to cut 10% of the marque's workforce in Germany – about 2,500 employees.
Interestingly, GM will reportedly hold on to a 35% stake in the brand, while Opel workers themselves will end up with 10% of the company. No word yet on what will happen to Vauxhall, Opel's UK twin. Thanks to everyone for the tips!
[Source: BBC]
Reader Comments (Page 1 of 2)
Jonathan 1:36PM (5/29/2009)
Does it come with Vauxhall? Buy 1 get 1 one free!
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CarlosMC 7:11PM (5/29/2009)
Buy one, get a 'bumper stick' free, you mean?... Vauxhall being nothing more than a name and a logo...
metzrs 8:43AM (6/03/2009)
There is a big production plant in Coventry where they make V6 3lt engines for Opel, SAAB and Vauxhall. Therefore, besides a brand name you get ``a bit`` more...
MemphisNET 1:42PM (5/29/2009)
Great that Opel/Vaxhaul continues to exist, but does this mean the start of a 'Canadian' car company?
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hypermiler 1:44PM (5/29/2009)
> 'Canadian' car company?
Russian Sberbank owns 35% of Opel, Magna only 20%. Of course Magna will run Opel on behalf of Sberbank, yet make no mistake about the actual ownership structure.
Epyx 1:54PM (5/29/2009)
Opel is still as German as it ever was.
mark.dayman 2:04PM (5/29/2009)
Hence the quotations. But Magna, regardless of its parents - is still primarily identified as a Canadian brand.
Everyone has their feet in somewhere else in the world. But if Magna was to take Opel product much like Saturn did, spin off a new brand and market it as Canadian, it would go over very well in this country. American's on the other hand, who knows what they'd think of it.
MemphisNET 2:09PM (5/29/2009)
This is why I stopped responding to comments, everyone is far too literal.
Magna is primarily identified as a Canadian operation, regardless who puts pisses the biggest stream in the family.
Canadians would also be first in line to buy a ''Canadian'' branded vehicle, regardless of origins. It also could lead to jobs once the economic tsunami has passed. Now, how American's would deal with the beaver-brand -- thats a whole different topic.
Redline 2:09PM (5/29/2009)
Does this mean that Opel will be sold under the Opel brand in North America. I'm itchin' for an OPC...
Bloke 2:20PM (5/29/2009)
No. Adam Opel GmbH is a German company. It's registered there, articled there, and comforms to German company law.
Its domicile does not follow that of any parent/holding company.
Frank 3:06PM (5/29/2009)
Does anyone have a link that talks about the possibility of Magna creating a Canadian brand car line?
Tony 5:37PM (5/29/2009)
I have been yapping about this for a while now. Instead of sinking billions of our dollars into to two bankrupt American owned and operated auto manufacturers that have taken all the profits back to America. We Canadians, should give Frank Stronach the money instead, to build a domestic brand here in Canada and offer Canadians the choice to support the domestic industry, or buy an import (Ford, Chrysler or GM).
David 5:42PM (5/29/2009)
I'm Canadian too. How can you be so sure that Canadians will be swerved in droves towards Opel, or Mr. Christie, or whatever it's called, away from Hyundai, VW and Honda/Toyota? I wouldn't bank on it myself.
"Canadian Pride" in the Pontiac Firefly, because it was exclusively Canadian (even though it was merely a rebadged Aveo) always struck me as uber-pathetic.
Grasping at straws much?
hypermiler 1:43PM (5/29/2009)
It's not too late for Obama administration to learn from Germans and to sell Chrysler to Magna instead of sleazy scamming Fiat.
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Rick C. 2:04PM (5/29/2009)
And do you believe Magna could do better than Fiat, an actual car company with over a 100 years of experience? I don't understand the 'sleazy' insult--Fiat has my respect.
MemphisNET 2:26PM (5/29/2009)
Rick, its the internet. Everyone mouths off without any thought behind it.
I have huge respect for Magna and the work they do, but Fiat definately isn't a 'bad' suitor for Chrysler. I mean, Mercedes crippled them beyond belief, can Fiat do any worse at this point?
Kumar 1:50PM (5/29/2009)
So now that Magna has Opel instead of Fiat, we know who the likely dealer will be statestide if the Saturn dealerships stay with Penske.
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Colin Smith 2:04PM (5/29/2009)
Magna wants nothing to do with Saturn, and nor does Fiat.
hypermiler 2:22PM (5/29/2009)
@ Colin Smith
Magna would like to distribute Opels through Saturn dealer network to get production running again in Opel's German plants that Magna vowed to keep open.
However, Penske is eying Renault Korea's vehicles, the only place where you can source Honda-level quality(Better than Nissan/Infiniti and Hyundais) vehicles at Hyundai-level prices. Renault Korea's vehicles aren't cheap(in fact, they cost more than equivalent Hyundais), but the quality is first-class.
MAXLD 2:13PM (5/29/2009)
If this BBC news are true, GM was making everyone else look like idiots and all this is a scheme to find someone to share the Opel financial obligations without giving up the brand and continue to take advantage of their work.
Backstabbers. They whine to the German government for money... then realize the Germans are not fools and they will not give money just like that without protecting their jobs... then they put Opel for a total sale, giving the Germans the major roll of finding a partner investor... some of the them appear and give proposals... then at the last day GM suspiciously demand more money... and now they say "screw you, we'll keep it, we'll sell a portion to these guys, and we'll send 10% of the workers to misery, just for fun".
I will not be impressed if they shift all the production from Germany to Russia in a near future.
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