Labor Leader Hopes Opel to Become Attractive for Rivals

Opel labor leader Klaus Franz is hinting that a potential deal with Magna International could turn the German unit into a more attractive target for rivals who are seeking partnerships in the auto sector. During an event hosted by ICCA, Franz said that automakers in certain regions would do better in case they would collaborate on a number of operations, including research and development or purchasing. This would more useful than seeking large mergers, he said, which do nothing more than to lead to thousands of job cuts.

"Five years from now, if we reach an agreement with Magna, the auto companies could find us interesting for strategic partnerships," Franz was quoted as saying by Reuters.

Klaus Franz is one of the strong opposers of a potential involvement of Fiat in Opel's business. He often emphasized that Opel's employees should get a larger stake in the company they work for, as Magna International agreed to cease only 10 percent of the company.

Nevertheless, the acquisition process started by Magna International continues, with more talks between the Canadian - Austrian investors and the German government. Magna says it expects to get the final signing by July 15.

"There was an agreement that Magna and GM on July 15 should be far enough in their negotiations that they can reach a conclusion that serves as the basis for a contract," Autonews cited a source close to the matter.

Separately, Magna earlier this month said that it expects to close the deal by September. "We think that we will be finished in the next four, five weeks and then there's the final signing," Magna co-Chief Executive Siegfried Wolf said. "After the signing, all approvals have to be given, and I think that we can expect a closing in September, end-September."