Report: GM preparing to sign a contract on selling Opel

Article by Christian A., on August 27, 2010

The contract signing between General Motors Co. and Magna International and Sberbank will take place next week, according to sources. The deal is meant for GM to sell a majority stake in its European arm Opel to Magna and Sberbank.

The source also said that it would be "realistic" to expect the deal to be signed by the middle of next week. This report is actually consistent with announcements made by

GM and Magna officials previously that they aim to get the contract signed by early October and for the sale to formally close by the end of November. Meanwhile, discussions participated in by the companies and Opel union leaders are ongoing.

So far, the talks have focused on the overall amount of cost concessions labor will provide instead of how to allocate the expected 10,500 job cuts the new owners plan.

Opel's 50,000 workers, about 50% of which are in Germany, have pledged to cut costs by 265 million euros ($388.6 million) per year and are expected to get a 10% stake in Opel in return.

On October, countries with Opel plants are scheduled to meet to discuss the possibility that the deal would lead to jobs being protected in Germany while workers in other European countries would lose their jobs, says Autonews.

Last Tuesday, the European Union's antitrust chief urged EU countries with Opel plants to present details of their proposed state aid for the carmaker as soon as possible.

Berlin has promised 4.5 billion euros in aid to Opel in order to protect as many jobs in Germany as possible, understandably drawing a lot of flak from EU countries. Britain and Spain have written letters to the EU executive questioning the German aid.

Topics: gm, opel

If you liked the article, share on:

Comments

Recommended

Skoda recently launched the new Karoq compact SUV as a replacement model to its now-defunct Yeti small crossover. Slotted below the newly introduced Skoda Kodiaq, the new Karoq features a...
by - May 23, 2017
There are already rumors suggesting that the next generation BMW 5-Series GT is expected to be joining the 6-Series range. The latest reports instead tell us that that 3-Series GT...
by - May 23, 2017
In 2004, the British marque Rolls-Royce officially entered South Korea with the opening of their showroom located in Seoul before opening their second showroom last September in Busan. Now RR...
by - May 23, 2017
In a game-changing move, Ford has revealed that it will soon produce its first ever all-electric CUV that will be built to be electric from the ground up, and it...
by - May 23, 2017
The wait for the Mustang’s GT-based Super Snake concept to be released is finally over. Shelby had recently collaborated with Ford Performance and Borla to come up with something that...
by - May 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries