Magna planning to sign Opel deal early next week
By Andrew C., 26 Aug, 2010. 0 Comments
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Despite continuing conflicts that are being raised in the talks, Magna International Inc. and its Russian partner Sberbank expect to complete the deal for a 55% stake in Opel next Monday or Tuesday, according to a Reuters report. It means that by next week, the Canadian auto parts supplier has to clinch a deal with Opel's influential labor leaders over annual savings of 265 million euros ($387.4 million).
Negotiations are being participated by the unions, Magna and Opel minority owner General Motors Co. over a restructuring plan that would lead to thousands of job cuts across Europe. Talks had resumed last Monday but they adjourned with no result on Thursday to allow the sides to take "time for reflection," according to the Deutsche Presse-Agentur (dpa) news agency reported.
Opel labor leader Klaus Franz said there is still a "substantial point to decide," but he described the talks as being "in the home stretch." Reportedly, one of the sticking points is the labor side's demand for a right of co-determination on factory closures. Furthermore, labor leaders don't accept Magna's plan to cut 10,500 of the 50,000 jobs at Opel's European factories including 4,500 in Germany.
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