Magna Wants to Use Opel to Conquer Russia

Magna has fairly ambitious plans when it comes to Opel, the German brand it is now struggling to buy. According to a report by the German daily Rheinische Post, Magna International plans to use Opel to expand its coverage in Russia and produce no less than 5 million cars per year. Furthermore, the Canadian - Austrian company has already established a plan codenamed Bean in which it would purchase the German unit with the help of Russian car manufacturer GAZ and local bank Sberbank.

Autonews says the three partners would use Opel to sell around 1 million cars a year in Russia and help the country exceed Germany in new car sales. And in case you're wondering, Russians are fairly attracted by Opel's models, as the German unit was ranked 11th in April when it comes to sales, with 15,506 cars delivered in a single month.

Just like we told you earlier this month, Magna International would also plan to use Opel to manufacture cars for other companies, including Ford and PSA Peugeot Citroen.

According to a statement of Opel Supervisory Board member Armin Schild, Magna International has submitted a more advantageous proposal for the German unit than its current rival in the Opel acquisition, Fiat. "Magna wants a financial investment with other investors in a holding company," Schild said in an earlier interview.

On the other hand, Fiat repeatedly insisted it does not intend to close Opel factories in Germany, with perfectly complies with the government's requirements who requested interested bidders to maintain operations in the country.

"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."
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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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