Opel to Build Cars for Other Automakers on GM Platforms

Just as we told you some time ago, Magna International, who is now favorite to take over the German unit Opel, plans to use GM Europe's brand to build cars for other automakers. And Magna's plans are already on table, despite that the German government repeatedly said the bidding process is still open to all interested parties, including Fiat, once seen as the main candidate for Opel's ownership.

According to a report by Autonews citing sources familiar with the matter, Magna plans to build cars for other manufacturers across the world using GM's platforms. The cars would be produced in Opel's factories based in Europe or even in overseas facilities, the source said.

"The global auto industry needs a radical restructuring. In the short term, sharing manufacturing on common platforms could offer clear savings without the immediate need of restructuring at the upper level —the ownership of carmakers and brands," he commented on Magna's plans. Additionally, the Canadian - Austrian manufacturer wants to "expand sales and production of Opel models outside Europe, as well as possibly sharing existing and future platforms with other automakers."

Although it's still unclear whether Magna has already held talks with other automakers on these plans, several other companies have expressed their interest, including PSA Peugeot Citroen and Ford.

"Automakers are often reluctant to buy technologies from their direct competitors," the source said. "Magna, with the neutral position of a supplier, has a chance to smooth edges during discussions on behalf of their clients."

Magna International recently sealed a deal with the German government and GM Europe to take over 20 percent of Opel, while its Russian partner Sberbank gains control of a 35 percent share. GM Europe will still own 35 percent of the company while 10 percent will go over to Opel's employees.