GM opts for Magna
10/09/2009
Following months of negotiations, General Motors says it plans to sell a majority stake in Opel/Vauxhall to Canadian auto supplier Magna International. However, the automaker said that a number of key issues over the deal still need to be agreed, including the confirmation of a definitive financing package from the German government and support from labour unions.
Under the deal, Magna along with Russia's Sberbank would purchase a 55 per cent stake in Opel; GM will hold a 35 per cent stake and employees will be provided with a 10 per cent stake.
In a statement, GM said that the deal would keep Opel/Vauxhall 'a fully integrated part of GM’s global product development organisation, allowing all parties to benefit from the exchange of technology and engineering resources'.
Fritz Henderson, GM president, commented: 'The hard work over the past two weeks to clarify open issues and resolve details in the German financial package brought GM and its Board of Directors to recommend Magna/Sberbank.'
He added: 'GM will continue to closely collaborate with Opel and Vauxhall to develop and produce more great cars, such as the new Insignia and the new Astra.'
Once the remaining issues have been ironed out, GM says that definitive agreements will be ready to sign within a few weeks, while the deal is expected to close within the next few months. |
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