Magna planning to sign Opel deal early next week

Article by Christian A., on August 26, 2010

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.

Topics: magna, opel

If you liked the article, share on:

Comments

Recommended

Earlier this month, we learned that France has made moves to ban diesel and gasoline fueled cars by stopping them from entering the city. More than that, they plan to...
by - July 19, 2017
The new 2018 Rolls-Royce Phantom VIII is on the way, but still, all we had been seeing are camouflaged prototypes of the eight generation of this iconic nameplate. Fortunately though,...
by - July 19, 2017
Would you have ever imagined a Mercedes-Benz developing an upscale pickup? We first saw this last October as a concept car and now, the production model of the Mercedes-Benz X-Class...
by - July 19, 2017
Haven’t you ever wondered how Ferrari’s names and numbers were actually derived? As it is Ferrari’s 70th year in the industry, we believe that it’s only fair that we shed...
by - July 18, 2017
Earlier this month, we were getting hints that Hyundai, along with its sister company Genesis, isn’t doing so well in the United States as well as in Europe. So this...
by - July 18, 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