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Reports suggest that General Motors and Canadian car parts group Magna International has reached an agreement in principle for the sale of Vauxhall/Opel.

Click here to read about Magna's plans to contract manufacture

The two sides have been trying to agree on a memorandum of understanding that would serve as the basis for bridge financing of 1.5 billion euros (£1.3 billion), as well as a s...Read the full article

We can only hope this is the "right" deal and that Vauxhall remain intact.

I do feel (right or wrong, I'm not sure yet) that this is possibly the best deal all round.

TegTypeR:

I do feel (right or wrong, I'm not sure yet) that this is possibly the best deal all round.

I'd agree with this. From what I've read here and elsewhere it seems to me that Magna's radical (for the motor industry) ideas about production methods and the potential involvement of other brands being built at the "Vauxhall/Opel" plants can only be good for a secure employment and production future here and in the other EU countries. It always seemed to me that Fiat's bid was more about personal agrandisement than a sensible expansion into a global car company.

TegTypeR:

I do feel (right or wrong, I'm not sure yet) that this is possibly the best deal all round.

 

Yeah this was my first reaction to the news too- that this was the best possible outcome in the circumstances- GM still keep 30%, so hopefuly this will allow for some continuity for opel/vauxhall 

Would be I right to assume the Chevrolet (old Daewoo) is not part of this deal?

thats it for opel / vauxhall. selling to a company that does not know how to build, sell, or market cars i don't rate their chances. making selling components is one thing, cars is another. alos it will be interesting to see how Fiat reacts as most of the diesel engines and gearboxes come from them,

Overdrive:

Would be I right to assume the Chevrolet (old Daewoo) is not part of this deal?

Indeed you would be right. It is only Opel & Vauxhall which are included, GM are keeping a hold of Chevrolet.

ivecoboy:

thats it for opel / vauxhall. selling to a company that does not know how to build, sell, or market cars i don't rate their chances.

That's not quite true, the Vauxhall / Opel knowledge base will still be there, no matter who buys them.  If Magna are sensible and don't go wading in with both feet, then there's no reason why they shouldn't continue marketing and selling the cars in the same way.

This sounds like good news.  I felt that Fiat were only attempting to buy in to boost their own ego so could only see a world of pain if they succeeded in their bid.  Magna may not be a car manufacturer themselves but are heavily in the automotive industry so means they are well placed to know how to run Vauxhall/Opel.  And hopefully with the GM stake it may well mean that Ellesmere Port will get the Ampera which I believe is an extremely important cat not only for GM, but for the future of the automobile.

The one worry on this is the "contribution" of our government.  The German government may well put up 1.5 billion euros of bridging loans to assist the transition.  As far as I know the UK is not chipping in.  This may well be remembered by Magna...

yes thats true, but what really cost the big money is the development of new product, on youe own that will be difficult particularly if you are not geared up for that type of thing. the list of companies that failed with good developent is long and sad. from a commercial vehcile point of view it was the delovpment of the the daf 95 that killed them off, only a buy out from paccar saved them.

ivecoboy:

thats it for opel / vauxhall. selling to a company that does not know how to build, sell, or market cars i don't rate their chances. making selling components is one thing, cars is another. alos it will be interesting to see how Fiat reacts as most of the diesel engines and gearboxes come from them,

 

Magna does already make and engineer complete cars. It builds the Chrysler and Dodge cars that are sold in Europe as well as certain models for other manufacturers. It owns the old Steyr faciities in Graz, Austria

Chelmersteve:

ivecoboy:

thats it for opel / vauxhall. selling to a company that does not know how to build, sell, or market cars i don't rate their chances. making selling components is one thing, cars is another. alos it will be interesting to see how Fiat reacts as most of the diesel engines and gearboxes come from them,

 

Magna does already make and engineer complete cars. It builds the Chrysler and Dodge cars that are sold in Europe as well as certain models for other manufacturers. It owns the old Steyr faciities in Graz, Austria

 

 I think Magna might just know what they are doing, they will of course take over the Opel Vauxhall design, development, distributin and marketing.

 

See their website http://www.magna.com/magna/en/