Magna to Get Past Opel Problems by July 7

As we told you a few days ago, negotiations between Magna International and Opel reached a dead end as some issues between the two are blocking the Canadian - Austrian parts manufacturer from completing the deal. But Magna expects to resolve all the issues by July 7 according to a report by Reuters, as the board of directors will hold a meeting on that day to establish a business plan for the takeover.

"They came significantly closer to one another in the key points," a source familiar with the matter told Reuters. "The only remaining issue is whether 'New Opel' gets the sales distribution rights to GM's Chevrolet brand for the Russian market, but a solution should be achievable here," another person added.

Magna also said some time ago it expects to get the Opel final signing by July 15 but recent reports hinted negotiations could continue through mid-September. "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," a source close to talks told Autonews.

Fiat CEO Sergio Marchionne revealed a few days ago that there are some problems between Magna and Opel and re-confirmed the Italian manufacturer's interest in buying Opel. However, he insisted Fiat won't improve its bid anymore.

"I don't believe we could improve Fiat's offer. It's the most rational one we can put forward from an industrial viewpoint," he said. "Talks with Magna were not going very well. We have confirmed our interest."

Nevertheless, Rainer Einenkel, the senior labor leader at Opel's Bochum plant, said Magna wants to close the deal by mid-September, despite reports claiming that the negotiations might fail to conclude before German elections day. "There should be a contract ready by July 15 between GM and Magna...by mid-September there should be a closing," he said.