Magna beats Fiat to Opel
General Motors European operations set for partnership with parts supplierAs the United States comes to grips with General Motors bankruptcy the company's European subsidiary Opel has reached an agreement with parts manufacturer Magna International Inc. The deal scuppers Italian car maker Fiat's attempts to incorporate the Opel and Vauxhall brands into its growing empire.
The German government will provide €1.5billion in bridge financing while the partnership is finalised. GM Europe issued a statement explaining that the company is not part of GM's bankruptcy proceedings in the US and a memorandum of understanding has been agreed.
"This has been a very intense and at times difficult negotiation over the past several days," said GM Europe President, Carl-Peter Forster. "We're extremely grateful to the various members of the German Government, led by Chancellor Merkel and Vice Chancellor Steinmeier, the various German ministries as well as the federal state governments of Hesse, North Rhine-Westphalia, Rhineland-Palatinate and Thuringia, and the leadership of the US Treasury for working so hard to reach this important agreement.
"The process for a future partnership in Adam Opel GmbH has moved a critical step forward with the MOU reached with Magna International, whose leadership has shown strong commitment to this project. With the financing, even with the GM actions in the U.S., we can now confidently say to our employees, customers, suppliers and dealers that it's business as usual as we go through the process of creating a new, more independent Opel/Vauxhall."
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