Magna Could Close Spanish Opel Plant...

...in case labor unions are rejecting the last proposal issued by the Canadian - Austrian partsmaker. Spain's industry minister Miguel Sebastian said according to Reuters that Magna might shut down the Zaragoza production facility if workers do not agree with the latest proposal of the company. Magna reviewed its cost cutting plans for the Spanish plant and only wants to cut 900 jobs if it takes control over Opel, down from the original 1,700 and 1,300 job cut initially planned.

"It would be a very bad option. I think the company has yet to close the sales deal with General Motors, so they would have to decouple themselves from the plant," Miguel Sebastian said.

"But I sincerely believe it is a very positive deal in the long term, although it requires a short-term sacrifice."

General Motors' board will meet on November 3 to re-discuss the Magna takeover proposal as several terms of the deal have changed since September when the US-based manufacturer agreed to the offer.

"In the meantime, work will continue to resolve remaining open points with the Magna/Sberbank proposal—for example, related to labor cost reductions and the government-backed financing package — to document the related understandings, and complete all preparations for the signing of binding agreements should that be authorized by GM’s Board at the November 3 meeting," John Smith, GM group vice president corporate planning and alliances (and GM’s chief negotiator for the sale of a stake in Opel/Vauxhall), said.

Magna International will take control of a 55 percent stake in Opel while General Motors will retain possession of 35 percent. Opel's workers will receive the remaining 10 percent.