GM and Magna reach deal on Opel

The European arm of General Motors would be shielded from the expected insolvency of the US group after an 11th hour deal reached on the 30 May 2009 that will see Magna International, the Canadian parts supplier, take over the business with financial backing from the German government.

The German government, facing a difficult election in September 2009, is keen not to allow Opel – a famous old manufacturing company with four large German plants – to disappear, taking thousands of jobs with it. Germany is offering €1.5bn in bridge finance to the company.

ESO: Background information: GM board meeting to finalise bankruptcy http://www.europeansources.info/record/gm-board-meeting-to-finalise-bankruptcy/

European Commission: MEMO/09/256: Second Informal meeting with EU ministers on the situation of GM on 29 May 2009 reconfirms need for coordination http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/09/256&format=DOC&aged=0&language=EN&guiLanguage=en

BBC News, 29.5.09: Magna is 'very close' to GM deal http://news.bbc.co.uk/1/hi/business/8074218.stm

BBC News, 30.5.09 Germany picks Magna to save Opel http://news.bbc.co.uk/1/hi/business/8074924.stm

Deutsche Welle, 30.5.09: Russian funds save German jobs in Opel deal ahead of elections http://www.dw-world.de/dw/article/0,,4292172,00.html

France24, 30.5.09: Relief as deal is reached to save Opel http://www.france24.com/en/20090530-relief-deal-reached-save-opel-germany-magna-gm-insolvency-bankruptcy-auto-crisis

IHT Europe, 30.5.09: Tentative Deal for G.M.’s Opel Is Latest Shift for Industry http://www.nytimes.com/2009/05/30/business/global/30auto.html?_r=1&ref=global-home

Website: Magna International http://www.magna.com/

Wikipedia: Magna International http://en.wikipedia.org/wiki/Magna_International

Wikipedia: Sberbank http://en.wikipedia.org/wiki/Sberbank

Website: Sberbank (English site) http://www.sbrf.ru/en/about/bank_today/

Deutsche Welle, 31.5.09: German coalition quibbles over Opel rescue deal http://www.dw-world.de/dw/article/0,,4294248,00.html

---