After securing about $2.1 billion in bridge financing from the German government, Magna International, the firm chosen to take over Opel from General Motors, says the automaker could be profitable in the next 24 months. Magna co-CEO Siegfried Wolf also hinted that Opel products could be sold globally – potentially in the lucrative North American market.
“It’s not just the volume alone that matters,” Wolf told Bloomberg. “Opel has good management. In combination with Magna, I’m quite sure they’ll find the right way to become competitive again.”
Magna will complete a business plan for Opel by September, but with a new Astra and Insignia anchoring the automaker’s portfolio, the future is bright, Wolf says.
North America, Russia
Magna received much of its financing from Russian bank Sberbank, which will own about 35 percent of the company. In return, Magna says it will partner with Russian automaker GAZ to build 180,000 cars annually in Russia with the potential of far more vehicles.
“I’m convinced the Russian people will have the necessary funds to buy cars,” Wolf said in the interview. Russia is expected to recover strongly from the global recession.
Even Russian Prime Minister Vladimir Putin expressed that he “is happy” that Magna and Sberbank acquired Opel because it will secure jobs in Russia.
Now that Magna has essentially acquired Opel, the Canadian company is said to be stepping up its game to acquire Saturn from GM, says Canada’s National Post. That ownership would provide Magna with a distribution channel for Opel vehicles and, depending on the deal, it could also give the company access to a GM assembly plant.
Magna’s founder, Frank Stronach has not been shy about admitting that he wants to see Opels built in Canada, or at least somewhere in North America, but the company would need distribution channels.
Saturn, Opel and Magna might seem like a match made in heaven – but that may not be the case. GM will continue to hold a 35 percent share in Opel and the Detroit automaker has said that it wants access to Opel products for North America.
“The conflict we see is that GM is planning on bringing in some Opel-engineered products,” an unnamed industry analyst told the National Post. “They would be competing” with each other.”
Then there’s the issue of funding. Magna would need to find a partner like Sberbank – not necessarily an easy task.
“That more than anything else would be the issue right now,” Global Insight’s George Magliano told the paper.
06/02, 9:22 AM
posted by:
AutoCritical
I guess it’s all talk till 2011 – Hopefully they can show GM how it can be done. I wish them well for it!
06/02, 9:34 AM
posted by:
saabaru1
Glad to get some details of the breakdown, and to see that GM is still holding onto 35%. (for America’s Sake). While I don’t think it is a good idea for Magna (still tied to the sinking ship), I do think it will be good for the Opel brand, and I never gave a Uranus about Saturn, so no loss there.
06/02, 10:13 AM
posted by:
Borat
…and GM did not see bankruptcy even a year ago. What does it all proves?
06/02, 10:35 AM
posted by:
JakeK66
^ I’m Dancing!
06/02, 10:39 AM
posted by:
JakeK66
I don’t care if they call them McDonalds Cheeseburgers, it’s just important that they get on our market. This is the only thing GM has that’s really complete packages as far as cars are concearned, I kknow abou tthe Camaro and Malibu, but they aren’r no where near what Opel can bring us.
For the sake of anything automotively holy, let Magna buy Saturn!
06/02, 10:53 AM
posted by:
JakeK66
As far as GM still wanting to use Opels…. Where in your lineup, GM, do you have room for the Insignia – or Astra since you took down the only two marquee’s that could sell European styled vehicles – Saturn and Pontiac? If you badge it as a Buick, you’ll compete internally with the new (and very nice) LaCrosse, badge it as a Chevy and it’ll take down the Malibu, badge it as a Cadillac, then well, you’ll make it too expensive for the people you want to buy it.
I know why you want them, it’s because they even know they are better products that will sell, but you f@#$ed up, so just let Magna sell them as Opels or Saturns!
06/02, 11:00 AM
posted by:
loudpedal
I worked for Magna for 6 years. I have no doubt that they’ll make a handsome profit. Whether I’d want to work there or not is a whole other story. I love Opel styling and I’m looking forward to seeing what they come out with.
06/02, 11:24 AM
posted by:
johnnycanuck
Ditto JakeK. I wish GM would just back the f*ck off. You lost, get over it. And why the hell do they still refer to Saturn as if it were something more than just a name on top of a signboard? Call it the network of dealerships formerly known as Saturn since we all know it’s highly unlikely that whoever winds up with the franchise will ever brand anything with the logo. Speaking of logos someone said yesterday what a good one Opel’s is. I agree, and the sooner it’s over here the better.
06/02, 11:35 AM
posted by:
leftwingagenda
hey b, i got back to you down here: http://www.leftlanenews.com/president-obama-announces-gms-chapter-11-bankruptcy-filing.html
cheers
06/02, 12:59 PM
posted by:
Go Saab
Question to GM: If the Opels are so good, why don’t you keep them 100% and scrap some other crap like GMC and Buick?
06/02, 5:03 PM
posted by:
andy
awesome, that plant is most likley the Solstice/ Sky plant, so it may live on after all
06/02, 10:38 PM
posted by:
parts guy
As a Magna employee and a Saturn owner, I ‘d be happy to buy an Insignia from the local Saturn/Opel dealer for my next car! Bring it on Frank!
06/03, 12:02 AM
posted by:
Pazzo Canguri
“Tell him he’s Dreamin”