REPORT: VW takes issue with Magna/Opel tie-up
You knew that something like this was coming sooner or later: at least one of Magna's clients have found the supplier's majority stake in Opel to be a conflict of interest. As it turns out, Volkswagen was the first automaker to cry foul. Magna is a major supplier for VW and its brands, while Opel is a big-time competitor. Spokesman Michael Brendel says the company going to "monitor this development very closely." We're guessing that translates roughly to "'if Opel receives any preferential treatment over VW whatsoever, heads will roll."
Should all go according to plan, Magna and its partner Sberbank will have a combined 55% stake in the new Opel. GM will retain a 35% stake, while Opel's 25,000 employees will receive the remaining 10% in the company. The German government provided 1.5 billion euro to keep Opel from entering GM bankruptcy proceedings, making the deal with Magna possible.
Magna expects Opel to once again become profitable within four years, and the Canada-based supplier intends to bring Opels to Canada by the end of the year. Opel vehicles will not be making their way to the U.S. under the terms of the agreement, however.
Magna co-CEO Siegfried Wolf expects the Opel deal to be signed off on in the next five weeks.
[Source: Automotive News subs req'd]
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Reader Comments (Page 1 of 1)
xtasi 5:52PM (6/04/2009)
sumanasandwich!!! "Opel vehicles will not be making their way to the U.S. under the terms of the agreement, however. "
Really GM? Giving us the finger one last time on your way out?
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zamafir 5:57PM (6/04/2009)
i'd read that as vw strong arming magna or magna actually wanting to make money.
blah 4:06PM (6/05/2009)
Wow, that sucks big time. Opel has a brilliant styling department, look at the Insignia, just beautiful, in my eyes the Buick doesn't flow as well as Opel's original design. Either way, they are great looking cars. I guess it doesn't really matter if Opels will be sold in the US or not, since you can probably find Opel's offerings somewhere else in GM's lineup.
...except the Solstice/Sky which are gone....Wouldn't it be weird if you could buy the Solstice/Sky in Canada under the Opel nameplate, and not even get one if you wanted in the US?
Tdogg 9:13PM (6/04/2009)
Remember, Magna wants to buy Saturn too, they never said theyre not selling Opels as Saturn here. Who would supply cars for Saturn anyways? Magna would have to get cars from somewhere. Why wouldnt they?
hh23 1:47PM (6/05/2009)
Dude Opals have been here for forever in the USA and nobody bought them. Some of those models were discontinued due to poor sales. How is GM giving us a finger on that one?
gearhead18 6:14PM (6/04/2009)
I'm happy because I'm in Canada but is it really that difficult for you guys to import vehicles to the States. All our cars here have MPH on the speedometer aready, we have slightly stricter bumper standards (not much), and they come with daytime driving lights. Importing from the US to Canada takes a little effort to make sure the vehicle meets the above standards but from Canada to the US seems like a breeze.
Am I right or just blowing smoke?
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zamafir 6:28PM (6/04/2009)
"but is it really that difficult for you guys to import vehicles to the States."
Yes, it is. Harder than it is for you to import US vehicles not on sale in canada.
Aprime 6:32PM (6/04/2009)
Bumper standards were changed, we're now using the same standards as USDM vehicles are.
Tony 10:37PM (6/04/2009)
Ah, as a few people found out lately when our dollars reached parity, buying the same vehicle down in the states does not mean an easy importation into Canada. Honda's sold in the U.S were not fitted with the engine immobiliser required in Canada. Honda Canada couldn't supply the part to be retro-fitted to U.S vehicles imported into Canada from the US.
The US has a whole different gamut of government regs and requirements to import cars not having DOT approval. This is what led to the gray market Lamborghinis, Ferrari's and Mercedes G-wagons of the 80's. Canada is far more lenient than the US in allowing certain vehicles for sale in Canada. Prime examples are sitting in my driveway, a diesel powered Toyota Landcruiser and the Yamaha RZ500 four cylinder two stroke motorcycle. Both of which were for sale in Canada but banned from sale in the US and you wouldn't be able to import them into the US anytime soon. You could import them into the US but only as an exhibit.
alexander 6:24PM (6/04/2009)
@blah have you ever seen insignia for real? Because in reality, insignia it'snt so hot, especialy if you look from behind. Buick looks better (from the pictures) i;d never seen one before
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Protzenegger 9:31PM (6/04/2009)
Are you talking about the Buick Regal or Lacrosse? Cuz the Lacrosse is entirely different from the Insignia and shouldn't really be compared to it.
Snowdog 6:54PM (6/04/2009)
Sweet. This Opel looks pretty good:
http://www.autoblog.com/2009/04/10/2010-opel-astra-hatch-gtc-coupe-and-wagon-revealed/
It should arrive just in time for me to buy a new car... Go Opel.
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Protzenegger 9:32PM (6/04/2009)
GTC = gimme.
Alex 7:09PM (6/04/2009)
When they arrive here in Canada, are they going to be still branded as an Opel and who is going to sell them; I'm guessing a GM dealer of some sorts.
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Hellas 7:08PM (6/04/2009)
That would be awesome...Opels are great cars for the masses. Built quality is at par or even better than VW. My father in law has a 1999 Vectra in Athens, full load except sunroof and it is still as solid as the day he bought it almost 10 years later!!! (which is more than I can say for my 2 year old Aura!)
Lets hope Magna brings all the trims as is!
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Stanley 8:00PM (6/04/2009)
Whoo-hooo!!!!!!!!!! That's awesome news! For us anyway. I'm sure the US market would be better being bigger and all (obviously) but so be it.
Except for the Antara and Uglia...I mean Agila...I'm excited! The new Astra...niiiiiiiice...the Insignia...niiiiiiiiiiice. All in all...niiiiiiiiiiice....:-)
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Protzenegger 9:35PM (6/04/2009)
The Antara and Agila aren't THAT bad. I'm guessing when the next iteration comes out, there is capacity for kickassness.
Avinash machado 5:21AM (6/05/2009)
So maybe GM will sell Opel cars through Buick and that is why they won't allow Magna to sell them in the US?
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