Magna Takes Opel

The month long battle between Italian manufacturer Fiat and Austrian Canadian company Magna is finally over, as the German government decided which of the two is the better suitor. Following a six hour round of negotiations, the German government and GM ruled in favor of Magna.

"I can tell you that a deal has been reached,” Finance Minister Peer Steinbrueck was quoted as saying by Reuters. His statement was backed by Siegfried Wolf, the co-chief executive of Magna: “In five weeks' time we should have the formal signing of the contract," he said.

The deal between Magna and Opel was agreed upon by all parties involved. Terrified at the prospects of an Italian ownership, Opel’s union saluted today’s decision. "It is good that the state has finally cleared things up. It was high time," said Oliver Burkhard, head of the union in North Rhine-Westphalia. "Now we can look ahead. Now the real work begins. The only thing that is certain is that Opel will keep going."

GM Europe admitted and at the same time hopes that this will be a new beginning for Opel. With the help of Magna, as well as with the 1.5 billion euros ($2.1 billion) financing, Opel is back on the track, despite the fact that final details of the deal have not yet been put to paper.

"I think this is the start of a new future for Opel, for the workers, the company and the brand," GM Europe head Carl-Peter Forster told journalists.

What has Fiat has to say? Life goes on…”If the Opel transaction is not available to Fiat, life will move on," Sergio Marchionne, Fiat CEO said.

Further statements from those involved, as well as further details on the deal are to be expected throughout the day, so keep an eye out for the developments.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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