Germany: GM to Sell Opel to Magna

After months of suspense, the board of General Motors has decided to sell its European arm Opel to the Canadian-Austrian auto parts group Magna.

This has also been approved by the Opel trust, that has the final say in the sale of the carmaker.

GM’s chief Opel negotiator John Smith told a news conference that according to Magna’s current plans, the Antwerp plant will be wound down.

[John Smith, GM Chief Negotiator]:
“So at the moment, I think it’s fair to say that in some way, shape or form, all four German facilities carry on.“

Magna International and its backer, the Russian state-owned bank Sberbank, will take a 55 percent stake in Opel and the UK’s Vauxhall.

GM will keep a 35 percent stake.

Opel employs 50,000 people in Europe – half of those in Germany.

This sale brings clarity for the workers who had been angered by how long Opel sale negotiations have lasted.

The German government is also pleased by the choice of Magna.

Berlin promised 4.5 billion euros – around $6.6 billion – in government guarantees if GM chose Magna.

And this will give a boost to Chancellor Angela Merkel, who is fighting for re-election at the end of the month.

[Angela Merkel, German Chancellor]:
“Let me say that we have moved a big step forward and that this promises to be a new beginning for Opel. This new beginning won’t be easy. I discussed it once again with the head of the works council, Mr. Franz. But the joy outweighs the new beginning.“

Merkel says the conditions attached to the Magna sale are manageable and negotiable.

The Germans believed Magna was likely to safeguard more jobs than rival bidder, Brussels-based RHJ International.

Most German Opel workers leaving the Eisenach plant were pleased about the decision.

But some had reservations about the details of the sale.

[Unidentified Opel Worker]:
“It would be super if the plant still gets work, can carry on producing and might even be built up.“

It’s understandable some workers aren’t sure what the future holds.

The head of the Opel trust warns there is lots of hard work ahead to get Opel back on track.

(NTDTV)