Avtotor to Assemble Opel Models in Russia

Opel's models will still enter production in Russian plants one way or another. While some sources hinted that as part of the Magna - Sberbank takeover Opel is likely to move a part of its production in Russian plants, the situation is still uncertain as the group led by the Canadian - Austrian partsmaker can't get the go-ahead to close the deal.

Meanwhile, Kaliningrad-based automaker Avtotor will begin full assembly, including welding and painting, of Opel's Astra and Zafira models on 26 October, the company said in a statement according to just-auto.com.

Such a plan requires an investment of 50 million euro, the company said. It already assembles a number of other models, including Chevrolet, Chevrolet-Daewoo, Cadillac, Hummer, Kia and BMW vehicles.

In the meantime, Magna tries anything that's possible to comply with workers unions' across Europe and get the green light for buying Opel. The company recently reconsidered its original job cut proposal for Spain and, after a new round of negotiations, it finally agreed to reduce the amount of jobs to be eliminated to 900 - it initially planned to cut more than 1,300 employees at the Zaragoza plant.

However, union leaders will present the proposal to Opel's workers on Monday. So there's more to wait before finding out whether the Canadian - Austrian partsmaker can proceed to takeover formalities.

Curiously, recent reports also issues a second solution for Opel: General Motors could retain control of the German brand and start restructuring using government money. Nevertheless, such a plan is not in the favor of General Motors who emphasized that it only wants to focus on its core brands and their global operations.