The German government has approved a deal for a Magna-led consortium to take a majority stake in Vauxhall/Opel.
After a second round of high-level talks in Berlin, a deal was reached late on Friday night.
Germany's finance minister Peer Steinbrueck said: "A solution has been found to keep Opel running. You can be sure that we did not take the decision lightly. All the federal and state representatives are aware there are some risks."
Under the agreement Opel will be placed under the care of a trustee. This will protect it from General Motor's expected filing for bankruptcy protection early next week.
Under the terms of the deal Germany's federal government is providing in a loan of US$2.1 billion to help fiannce the deal. It will have to be paid back at a later date.