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.
Magna co-CEO Siegfried Wolf said he expects agreements with GM to be signed in five weeks time.
"We really have taken the risk that was necessary to show a commitment, and we are committed, otherwise we wouldn't have done this deal," Wolf said.
Under the deal Magna will take a 20 per cent stake in Ope, the Russian-owned Sberbank will take a 35 per cent stake, giving their consortium a majority. GM will retain a 35 per cent holding, while the remaining 10 per cent will go to Opel employees.