GM sells a 55% stake in Vauxhall and Opel to Magna

Article by Christian Andrei, on August 27, 2010

Finally, the verdict is in! General Motors sold a 55% stake in Vauxhall and Opel to Magna International and its Russian banking partner Sberbank. GM retains 35% of the company, while the remaining 10% will be held by an Opel employee trust fund.

In a statement, GM CEO Fritz Henderson said that the "hard work over the past two weeks to clarify open issues and resolve details in the German financial package brought GM and its board of directors to recommend Magna/Sberbank."

GM is said to continue to collaborate with Opel and Vauxhall to produce cars, such as the new Insignia and the new Astra. Magna however, still has to reach certain conditions for the agreement to be completed. At the moment, the terms of those conditions have not been revealed.

Moreover, the deal must have the approval of the relevant labor unions and the German government must agree on a financing package. Magna will most likely know if it can meet these demands only after the German elections, which take place on September 27.

Last May, GM signed an initial agreement to sell a majority stake in Opel to a Russian-backed consortium led by Magna.

That deal fell apart as senior GM executives became increasingly worried that Opel under Magna would transfer technological expertise to the supplier's industrial partner GAZ, Russia's second-largest domestic carmaker and a rival to GM's successful Chevrolet brand in Russia. [via autocar]

Topics: opel, vauxhall, magna

If you liked the article, share on:


Login or Create new account to add a comment!


Mitsubishi is now officially part of the Renault-Nissan alliance after Nissan took over the Japanese car company recently. We know a lot has been happening in the car industry, but...
by - October 24, 2016
Driving the newest 2017 BMW 5-Series (G30), Clive Owen (Closer, Children of Men) returns to his role as “The Driver”. In this latest installment, what initially starts as a simple...
by - October 24, 2016
Many had wished that a Lamborghini Huracán Superleggera would somehow make a surprise debut at the recently held Paris Motor Show. Sadly, not a single Lamborghini appeared anywhere in sight....
by - October 24, 2016
Aston Martin and Red Bull Racing teamed up for the first time in creating what looks like one of the most ferocious beasts in history. The British car manufacturer has...
by - October 24, 2016
German premium carmaker Audi is reportedly planning to buy back around 25,000 Audi Q7 SUVs powered by its 3.0-liter V6 TDI engine in the United States. The buyback should compensate...
by - October 24, 2016