Magna's Plans for Opel Detailed

Now that the German government has sealed a deal with Magna International, we're extremely curious to find out how the Opel future will look like, especially given the so many reports hinting that the Canadian-Austrian has all kind of intentions when it comes to the ailing German unit. Magna's co-Chief Executive Siegfried Wolf talked to reporters last week in Berlin, revealing that General Motors will still own 35 percent of Opel, while 10 percent will go to employees of the German manufacturer.

"Our interest is for the long run. There are no deals of any kind whatsoever to sell the shares (to other investors or Opel owners)," Wolf said according to Autonews.

The Canadian-Austrian automaker 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.

As for the job cuts to come following the deal Magna has reached with the German government, the company's official revealed that all four Opel's domestic facilities will remain open but the Antwerp factory in Belgium and the ones in Luton and Ellesmere Port in the UK might close their doors. However, the company will still look for alternative solutions to keep them open.

Additionally, the Canadian-Austrian automaker doesn't exclude the possibility to build cars for other third-party companies, with Wolf hinting that exactly the plants likely to close their doors might serve this purpose.

GM Europe's President Carl-Peter Forster will still remain in the future Opel board, Wolf also revealed. "Opel is positioned well in terms of its management and we are committed to the existing team as it stands now."