Magna still says on Track to purchase Opel from General Motors Blog Post at Automotive.com
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Magna still says on Track to purchase Opel from General Motors

Posted July 9 2009 03:50 PM by staff 
Filed under: Miscellaneous

There have been reports in recent weeks that General Motors' deal to sell GM's European Opel to Magna International was falling apart.
 



That is not the case, according to Opel co-CEO Siegfried Wolf. He said that the papers will be presented to GM so that it can make a decision on July 15.

Well, that's good news for the unions. There had been reports that Beijing Automotive of China had stepped forward to compete for Opel. Beijing Automotive offered $921 million, adding there would be fewer job cuts and less state funding than the Magna offer.

However, the unions oppose the Chinese company’s move. They fear that Beijing Automotive is not dedicated to keeping Opel in business for the long run. They also fear that the company will use its control of Opel to take GM technologies and plans to move production from Germany to China.



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