Opel, Magna in tentative deal
With its current owner, General Motors, facing a very-likely bankruptcy, Germany desperately wanted a new owner for Opel to save it from insolvency, save thousands of workers from unemployment and save the politicians from failing in re-elections.
After hours of talks with Italian automaker Fiat and Canadian auto parts supplier Magna International, GM has reached an agreement, in principle, to rescue the German unit.
The two sides have been trying to agree on a memorandum of understanding that would serve as the basis for bridge financing of 1.5 billion euros ($2.1 billion) as well as a trustee solution that would protect Opel from creditors in case GM files for Chapter 11.
A framework agreement has been reached, per sources, but the MOU has not been signed yet. Fiat, which wanted to create a global auto empire after buying a stake in Chrysler, doesn’t look like it’s going to get very far in that goal any time soon. With Magna in, Fiat is out. Stay tuned for the final details on the fate of Opel.