Magna to acquire Opel as fears mount over UK jobs
Share
General Motors is today (June 1) expected to file for bankruptcy, while the German Government is set to agree a deal for Magna International to takeover its European arm.
The main concern in the UK now is the future of the 5,000 workers at GM Europe’s two Vauxhall plants. Magna International, the Canadian auto parts company, is yet to reveal what it plans to do with the Luton and Ellesmere Port operations.
A formal announcement of Magna’s takeover of Vauxhall and Opel is expected imminently, and will see it spared from following GM in the US into bankruptcy.
US President Barack Obama is expected to hold a news conference today and detail the Administration’s plans to provide GM with $30bn (£18.5bn) in new funding. It will be in addition to the £20bn it has already received in state aid.
Meanwhile, a US court has approved the sale of Chrysler’s assets to the Fiat-led consortium. It will see the latter taking a 20% stake, while 68% will be held by a healthcare trust aligned with the United Auto Workers union, and 12% by both the US and Canadian governments.
