Report: GM Puts Opel Sale to Magna On Hold

Colum Wood
by Colum Wood

The sale of GM’s European Opel division to Russian-backed Canadian autoparts maker Magna has been put on hold. The on-again, off-again saga is off-again as GM board is set to meet on November 3rd to review changes to the agreement.

The changes, include a request by the German Economy Minister to GM, asking the company to clarify that the decision to choose Magna over rival Belgian bidder RHJ International was due to business and not political reasons. That may be difficult for GM to do as the German government had promised a significant loan to Opel if Magna was chosen, with the understanding that Magna’s proposal would keep more jobs in Germany.

Recently the European Commission put pressure on the German government to clarify that the proposed aid was available to any bidder and not just to Magna – which it seems was not the case. If the German government changes its tune, that may cause GM to favor Magna’s Belgian competitor and put the entire deal in jeopardy.

[Source: Automotive News]

Colum Wood
Colum Wood

With AutoGuide from its launch, Colum previously acted as Editor-in-Chief of Modified Luxury & Exotics magazine where he became a certifiable car snob driving supercars like the Koenigsegg CCX and racing down the autobahn in anything over 500 hp. He has won numerous automotive journalism awards including the Best Video Journalism Award in 2014 and 2015 from the Automotive Journalists Association of Canada (AJAC). Colum founded Geared Content Studios, VerticalScope's in-house branded content division and works to find ways to integrate brands organically into content.

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