GM to Build Cars in Russia with Magna, GAZ

Even if the Opel deal failed to get through, General Motors is still planning to bring Opel in Russia and who else can support such an expansion goal if not Magna and GAZ? The US-based manufacturer is reportedly planning to start negotiations with the two companies in order to study the ways to start production of its models in Russia.

“I see us being able to pick up with Magna and GAZ and continue to try to develop this business – but obviously now as part of a GM-retained Opel, not as part of a Magna-Sberbank consortium,” GM Group Vice President John Smith, was quoted as saying by leftlanenews.com.

Additionally, it appears that General Motors contacted Sberbank, Magna's potential partner for the acquisition of Opel.

However, Russia's Prime Minister, who criticized the way General Motors negotiated the Opel sale, said that the US-based manufacturer hasn't negotiated such a plan.

“GM didn’t discuss anything with anyone,” he explained. “It doesn’t hurt our interests, but it speaks of a peculiar culture of communication of American business with its business partners,” Putin said. “This arrogant attitude is directed first and foremost at the Europeans rather than at us.”

After months of negotiations, General Motors announced last week its decision to scrap the Opel sale and start restructuring on its own. The company has already started negotiations with countries hosting Opel factories for the financial support it needs during the process. Additionally, the GM executives must reach an agreement with labor unions across Europe who repeatedly showed their disagreement towards the Opel decision.