Magna Could Use Opel to Build Cars for Peugeot, Ford

Magna International, one of the interested parties to purchase the German manufacturer Opel, said it could use the ailing automaker to produce cars for other brands, including Ford and Peugeot. The report was published by the German newspaper Welt am Sonntag and, according to Autonews, it cited Magna sources familiar with the matter which might be the first sign that there's something true in this.

OK, how could this be possible? Well, according to reports, in case Opel is forced to reduce the capacity of its production plants, it would make room for other brands. This could help the new owner, in our case Magna International, maintain the production level unchanged, which obviously translates into no job layoffs or production cuts.

However, Magna might still close the doors of some plants in Antwerp, Belgium, and Luton, England, the aforementioned publication wrote.

On the other hand, the other party involved in the Opel saga, namely Fiat, said in early May that it doesn't plan to close any Opel plant but instead, it will still cut some staff. No figures were provided at that time.

"We don't want to close any of the four Opel factories in Germany. I will need the plants in the future to build enough cars," Marchionne told German newspaper Bild. This doesn't mean the people themselves won't be affected. "But of course staff levels have to fall. No one will be able to change that. The plants have to become more efficient."

Meanwhile, Magna seems to have become the favorite company to buy Opel, as Opel Supervisory Board member Armin Schild told Reuters a few days ago. "Magna wants a financial investment with other investors in a holding company," Schild said in an earlier interview.