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GM Does Not Allow Magna to Sell Cars in the US, China

Although Magna International yesterday announced that it intends to produce and sell cars in Canada - in order to support its North American expansion - it might seem the Canadian - Austrian manufacturer might have to think twice before doing it. General Motors has taken some preventive measures to be sure Magna won't beat it with its very own weapons: the official selling papers are stating that the new Opel owner is not allowed to sell Opel models in the United States and in China!

Why China? you might ask. Well, General Motors puts most of its hopes in China, a continuously growing market which is expected to boost the company's revenues even during recession times.

The news has already been confirmed by Magna's chairman who also expressed his confidence that things might be a bit different in the future in case GM's restructuring process follows the right path.

"The agreement with General Motors does prevent us from selling Opel in the United States," Frank Stronach was quoted as saying by Autonews. "Yes, for the moment, but keep in mind that General Motors -- we've been working together for 50 years, we've been great partners, and they still own 35 percent (of Opel)," he answered when asked if the restriction also includes China.

However, Stronach is very confident that Opel will do very well in the future, expecting to return to profitability in approximately four years. Furthermore, it predicts Magna will become a leader in the electric car market. "I'm very confident that Magna will be amongst the leaders in selling and building electric cars," he said.
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About the author: Bogdan Popa
Bogdan Popa profile photo

Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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