Germany Picks Magna to Buy Opel

Robert Farago
by Robert Farago

Was there ever any doubt, really? If there was, it’s gone now, as Bloomberg reports that the German government has decided to put its taxpayers’ money behind a Magna-owned Opel. German Finance Minister Peer Steinbrueck told reporters in Berlin that Germany will provide a $2.1 billion “bridge loan” (direct translation) to keep Opel alive. “A solution has been found to keep Opel in operation,” Steinbrueck said. “You can be sure that we didn’t take the decision lightly. All the federal and state representatives are aware that there are some risks.” And there I was thinking understatement was an English thing.

Robert Farago
Robert Farago

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  • Michael Karesh Michael Karesh on May 30, 2009

    By going to Magna rather than Fiat, Opel will remain closely associated with GM. Opel isn't large enough to be independent, so it has to partner with someone.

  • PeteMoran PeteMoran on May 30, 2009

    So does this mean in NA, that "new GM" picks up a new import competitor? High-fives all round then....

  • I hope that we carry on seeing opel with GM.

  • Rod Panhard Rod Panhard on May 30, 2009

    One wonders if Fiat was thinking that the larger Opels would be marketable in the U.S. So much for that. From what I read, the Russian built cars are only competitive with other Russian built cars. So bringing Opels into Russia, albeit current Opels, could be very profitable.

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