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Successful Saturn Bid Could See Opel-Based Saturns Built in Canada
By solidifying a deal to take control of GM’s European operations, Canada’s Magna International Inc. is eager to start producing Opel cars in Canada.
“We want to build Opel cars in Canada,” said company founder and CEO Frank Stronach. “Canada should have its own Canadian company … a truly Canadian automobile industry.”
The third largest auto parts supplier in the world, Magna certainly has the resources and the know-how – it just doesn’t have the facilities to build cars in Canada. That, however, might all change as Chrysler may close operations and General Motors Canada recently shut down its truck plant in Oshawa, Ontario.
The lower value of the Canadian currently would likely help matters and should be enough to easily offset the cost of shipping vehicles to Europe – although it’s not clear that Canadian-built cars would be for the European market, as moving production outside of Germany would certainly be a devastating public relations move.
What Stronach may have in mind is for Opel-based cars to be built in Canada for distribution in Canada and the U.S. As Magna is also currently bidding to take control of Saturn from GM, it’s entirely possible that production of those models, all but one of which are based on Opel vehicles, could happen in Magna’s backyard.
There is also a strong possibility that Magna will expand into the Russian car market.
Magna’s partners in the Opel deal include Sberbank of Russia and both Stronach and Magna have strong ties to Russia. Stronach actually did work as an auto industry adviser for Prime Minister Vladimir Putin and Russian Magna investor Oleg Deripaska (the owner of Russian truck maker GAZ) has had long standing aspirations to sell consumer cars.
Building Opel models in Russia is a strong possibility, however, it is unlikely those models would be exported to Europe.
General Motors is expected to announce final candidates for the sale of Saturn in the next few weeks.
[Source: The Globe and Mail]
Only yesterday it seemed as though Italian car maker Fiat was likely to purchase GM’s European Opel brand, but now a new player has emerged. Magna International, the Austrian-Canadian parts supplier to OEMs like Chrysler, Ford and Mercedes has “announced” plans to purchase a controlling share in Opel.
The news didn’t come from Magna, however, but from a politician in Germany. Kurt Beck, the state premier of Rhineland-Palatinate, one of the German states where Opel builds its cars, announced that Magna wants to acquire a 20 percent stake in Opel directly.
A spokesman for Beck said that Magna is also looking into other options to gain an even larger share of Opel. This could include, as reported in Canadian newspaper The Globe and Mail, a deal with Russian billionaire Oleg Deripaska that would see the two partners purchase as much as 50 percent of Opel.
A Magna spokesman would not comment on the news.
General Motors is eager to part with Opel as it needs to sell off much of the company in order to secure $3.4 billion in loans from the German government. Currently Fiat is the only other strong contender for Opel.
General Motors is also looking to find a buyer for it’s British Vauxhall brand, however, no major bidders have emerged.
[Source: Automotive News]