Opel now partly Canadian

[Payman]

German Chancellor Angela Merkel says a deal to have Magna International acquire General Motors' Opel division will give the European automaker "prospects for the future."

Merkel spoke about the deal on Saturday, the same day her government agreed to provide US$2.1 billion in bridge loans, as well as $424 million for short-term expenditures, so that a trustee can take control of the company on Saturday.

"Opel has been given prospects for the future," said Merkel, following overnight talks involving her government, as well as the two automakers involved in the deal. "Now the work for Opel and for Magna ... really begins."

Magna will own 20 per cent of Opel, combining with the Russian-owned Sberbank's 35 per cent stake to take a majority interest in the company.

GM will also hold 35 per cent and Opel workers will take the remaining 10 per cent.

[Madman]

Since Opel will now be owned (in part, at least) by a Canadian-based company, I wonder if that means Opels will be sold in North America as Opels instead of being rebranded as Saturns, Chevrolets, Cadillacs or whatever?  Opel-branded Opels in North America will give German car fans another affordable range of cars to choose from besides Volkswagen.


Cheers,
Madman of the People

[the Teuton]

Since Opel will now be owned (in part, at least) by a Canadian-based company, I wonder if that means Opels will be sold in North America as Opels instead of being rebranded as Saturns, Chevrolets, Cadillacs or whatever?  Opel-branded Opels in North America will give German car fans another affordable range of cars to choose from besides Volkswagen.


Cheers,
Madman of the People

An Astra OPC Nurburgring Edition would tickle my fancy, thanks.

[cozmik]

If Magna, on of the rumored bidders for Saturn, we'll probably get straight up Opels branded as Saturns. Otherwise I'd say it's unlikely. And Opel is more Russian than Canadian at this point, they're only 20% owned by Magna, but they're 35% owned by Serbank of Russia now...

Trying to introduce Opel, especially right now, into the North American market would likely be a disaster.

[SVT666]

An Astra OPC Nurburgring Edition would tickle my fancy, thanks.

Nice car, but I would rather have the Focus RS which is much faster and a better handler.

[the Teuton]

If Magna, on of the rumored bidders for Saturn, we'll probably get straight up Opels branded as Saturns. Otherwise I'd say it's unlikely. And Opel is more Russian than Canadian at this point, they're only 20% owned by Magna, but they're 35% owned by Serbank of Russia now...

Trying to introduce Opel, especially right now, into the North American market would likely be a disaster.

Lada Niva please.

[Galaxy]

This caused quite a political storm over here.

The German Minister for Economics Karl Theodor Zu Guttenberg publicly said that what Magna did mounts to extortion, since magna itself has almost no risk in this enterprise and that Magna knew that most of the german government was ready to sign anything to prevent Opel from imploding in an election year. After the other Ministers over ruled Zu Guttenberg in accepting the Magna offer, an infuriated  Zu Guttenberg  allegedly wanted to resign but Merkel convinced him  to stay on to prevent damage to the party.

[SVT666]

Stronach plans to build electric cars here in 3 years

Canadian auto parts magnate Frank Stronach, chairman of Magna International Inc., hopes to mass produce electric cars and motors in Canada within three years.

Stronach, who was in Ottawa on Tuesday to unveil the new electric vehicle to MPs, told reporters he wasn't ready to provide many details about the ambitious plan.

"We are not here with the (specifics)," Stronach said.

"We just wanted to let the government know we are very serious, we have a serious commitment and we'd like to sit down and we'd like to operate in manufacturing in Canada."

Stronach returned to Canada on Sunday after making a major deal in Germany to purchase a 20 per cent stake in General Motors' European division, Opel.

The deal is expected to close in about two months.

He said he has not yet been approached about meeting with Prime Minister Stephen Harper about setting up new plants here, but said "if the prime minister wants to see me I'm always available."

Stronach has also indicated he expects Opel to break even in three years and turn a profit in four. The car company is currently a money-losing operation.

He also hopes to expand Opel's business to Russia and other parts of the world.

Stronach, father of former MP Belinda Stronach, told the Toronto Star he also wants to import Opel cars to Canada by the end of this year, a move that would lead to eventually building the vehicles in Canada.

He said the deal for Opel comes with a condition from GM that the European brand can't be sold in the U.S.

But he suggested that the terms aren't iron-clad and could eventually change, noting Magna and GM have been partners for 50 years, and GM will still own 35 per cent of Opel under the arrangement.

"I'm a great believer that if you come forward with a good program, which makes a lot of common sense, that you can always change a few things. I'm not worried about that. If it makes economic sense you can always change the contracts."

Magna, which has its headquarters north of Toronto in Aurora, Ont., is the third largest auto-parts maker in the world.