Hoya
30th May 2009, 01:27 PM
According to the BBC News, supplier Magna International has come to terms with General Motors to purchase a majority stake in its European Opel division. While an agreement has been reached between the two parties, the German government – which has agreed to provide financial assistance for Opel – needs to sign off on the matter. Magna and GM have signed a memorandum of understanding that will reportedly help Opel secure some 1.5 billion euros ($2.1B USD) in bridge loans, as well as shore up protections against creditors in the event of a GM bankruptcy.
For its part, Magna will reportedly pour somewhere between 500-700 million euros into Opel, and it plans to cut 10% of the marque's workforce in Germany – about 2,500 employees.
Interestingly, GM will reportedly hold on to a 35% stake in the brand, while Opel workers themselves will end up with 10% of the company. No word yet on what will happen to Vauxhall, Opel's UK twin. Thanks to everyone for the tips!
[Source: BBC (http://news.bbc.co.uk/2/hi/business/8074218.stm)]
http://www.autoblog.com/2009/05/29/breaking-bbc-says-magna-has-agreed-to-take-majority-stake-in-op/
For its part, Magna will reportedly pour somewhere between 500-700 million euros into Opel, and it plans to cut 10% of the marque's workforce in Germany – about 2,500 employees.
Interestingly, GM will reportedly hold on to a 35% stake in the brand, while Opel workers themselves will end up with 10% of the company. No word yet on what will happen to Vauxhall, Opel's UK twin. Thanks to everyone for the tips!
[Source: BBC (http://news.bbc.co.uk/2/hi/business/8074218.stm)]
http://www.autoblog.com/2009/05/29/breaking-bbc-says-magna-has-agreed-to-take-majority-stake-in-op/