German government backs Opel rescue deal

Posted by Superior on May 30th, 2009 and filed under Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

artsteinbrueckafpThe Austrian-Canadian firm will buy a majority stake from Opel’s U.S. parent company General Motors.

“I can tell you that a solution has been found,” Finance Minister Peer Steinbrueck said early Saturday after a meeting with the dealmakers.

In exchange for Magna investing in Opel, the German government will provide a $2.1 billion bridge loan to GM to keep Opel in business, Steinbrueck said

Magna also wants to seek Russian partners for Opel, a government statement said. One of those partners is Sberbank, Russia’s biggest bank. The other is Russian automaker GAZ Group, said Andrzej Kasperek, director of corporate business development with GAZ.

“I think the whole arrangement with Magna and the Russian partners made this a very attractive deal for GM,” Kasperek said. “Opel is very well regarded as a brand. But we think we can increase sales in the next five years.”

1 Response for “German government backs Opel rescue deal”

  1. KrisBelucci says:

    da best. Keep it going! Thank you

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