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Magna's New Goal: Build Opels in Canada

Magna, the new Opel owner, has very optimistic plans when it comes to the German ailing brand and, in addition to the scheme we have already told you about, the Canadian-Austrian manufacturer also aims to bring Opel in Canada. The reason? Magna sees it as a way to conquer North America, with Opels regarded as cars that have the ability to tackle the recession. Anyway, Magna International hasn't provided specific details on how or when it will start building Opels in Australia.

"We want to build Opel cars in Canada," Magna chairman Frank Stronach told The Globe and Mail on Saturday according to drive.com.au. "I know we can be competitive, I know we can create jobs in Canada and the United States. If we don't change the culture, North America's got no chance to be in the automobile industry, absolutely no chance."

As part of the proposal to take over Opel, Magna revealed that it plans to invest between 500 and 700 million euros in the German brand, with the local government to provide an additional 5 billion euro loan. "We expect a time horizon of 24 months after closing before Opel will be in a position to earn money again," Wolf said.

In a report published in May, Magna International said the company might also use Opel to expand its coverage in Russia. According to the terms of the deal, Magna will take control of a 20 percent stake in Opel, while its Russian partner Sberbank will hold a 35 percent share. General Motors Europe will still own 25 percent of the new company while Opel employees will receive the remaining 10 percent.
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About the author: Bogdan Popa
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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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