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Opel awaits GM’s word on plan from Magna

Posted Wednesday, Apr 29, 2009, 2:35 pm in Employee News

Germany’s economy minister said today that Canadian car parts maker Magna International Inc. has drawn up a “rough concept” for its possible investment in Germany’s Adam Opel GmbH, but the next move hinges on Opel’s U.S. parent company, General Motors Corp, the Associated Press reported.

Magna, along with Italian carmaker Fiat SpA, have expressed an interest in taking a stake in Opel, according to the AP. GM has been trying to find investors for its non-core and nonprofitable assets as part of a restructuring in which it has sought billions of dollars in aid from the U.S. government to avert its collapse, the news service said.

Opel has said it needs $4.3 billion to get through the economic crisis, while the German government has said it doesn’t foresee giving direct state aid, the article said. Chancellor Angela Merkel has suggested the government could help an Opel investor with loan guarantees, the story said. (Associated Press/Detroit Free Press)
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