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

The new 2018 Ford Mustang GT, when equipped with its optional Performance package, will be able to produce 460 horsepower. It also comes fitted with Michelin Pilot Sport 4S tires...
by - October 19, 2017
It’s not as if the Porsche 718 Boxster and Cayman are not already impressive cars. The automaker has just given us more reasons to love the twins. The 2018 model...
by - October 19, 2017
After months of dropping online teasers, Polestar finally reveals its very first production car virtually. The Polestar 1 is a two-door coupe that gets its design inspiration from the 2013...
by - October 19, 2017
While the official premiere of 2018 Jeep Wrangler (JL/JLU) is already set this December, fans everywhere rejoiced at having had something like this appear on the web. Yes, everything we...
by - October 19, 2017
South Korean carmaker Kia will try to follow up the success of its Sportage compact sports utility vehicle by introducing a smaller SUV (subcompact) in the United Kingdom in the...
by - October 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