Report: GM, Magna Agree on Pact for Opel Rescue

May 29, 2009

(ChattahBox) —  Bloomberg sources report General Motors Corp. and Austrian-Canadian car parts maker Magna International Inc. have reached a framework agreement on a rescue for the Opel unit in Germany. Speculation is the deal may be to buy GM Europe, which includes Germany’s Opel and Vauxhall of Great Britain.  The deal would likely be in cooperation with Russian state bank Sberbank Rossii and Russian automaker GAZ. A deal would require Germany’s government to provide interim financing for Opel while GM finalizes any deal. Chancellor Angela Merkel’s government was meeting today to decide whether Opel’s future was sufficiently safe to provide the carmaker with €1.5 billion ($2.09 billion) of taxpayers’ money. To make this all work Germany wants the U.S. Treasury to agree to place Opel under a trust company that would separate the German-based operations from GM’s expected chapter 11 proceedings in the U.S. Fiat has also been trying and reiterated its intent to purchase Opel, but that seems to be on the back burner now.


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