Motor Authority - blog Tag: Magna

Late last month reports emerged that GM's sale of Opel to a consortium of buyers led by Magna International and Russia's Sberbank could be done as early within weeks. Since then, the deal hasn't quite come to completion, undergoing scrutiny from the EU for fairness in the bidding process. Today, GM made all the hubbub around the Opel sale meaningless by announcing it has decided to keep the brand.

GM CEO Fritz Henderson summed up the decision succinctly: "This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall’s long-term future." He also acknowledged that the whole ordeal has been "draining" for all...

Late last month reports emerged that GM's sale of Opel to a consortium of buyers led by Magna International and Russia's Sberbank could be done as early within weeks. Since then, the deal hasn't quite come to completion, undergoing scrutiny from the EU for fairness in the bidding process. Today, GM made all the hubbub around the Opel sale meaningless by announcing it has decided to keep the brand. GM CEO Fritz Henderson summed up the decision succinctly: "This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall’s long-term future." He also acknowledged that the whole ordeal has been "draining" for all involved, but was unapologetic about the sale reversal. The drama isn't over, however, as the economic situation in Europe, especially for the car industry, is still touch-and-go. Quick action to restructure Opel/Vauxhall's operations and investment in the company by EU governments will be necessary to pull the company through according to the new plan. The delay that preceded the switcheroo was rooted in EU concern for the bidding process and its fairness. According to a late October posting to GM's FastLane blog by John Smith, GM Group Vice President, Corporate Planning and Alliances, "Last week, the Directorate-General for Competition expressed concerns about possible limitations on the availability of government financing for all Opel bidders, and how that may have influenced the selection process. "The German Government was asked by DG Competition to communicate its position on financing availability to GM and the Opel Trust Board who, in turn, were requested to consider the recommended bidder for Opel accordingly." Negotiation of the finer details was ongoing for about a month, though the agreement did make clear the general shape of the deal: GM would have retained 35% of Opel, with 10% reserved for Opel employees, and the Magna-Sberbank group would have taken the remaining 55%. Perhaps most telling in the whole deal, GM still has plans for the brand's cars here in the U.S. Although Saturn was previously the primary outlet for re-badged Opels in America, Buick recently confirmed a redesigned Insignia to be sold as the Regal. For more on what may be in store for that car, read up on our preview story here.[GM] Read More

With a fresh majority stake in Opel, Magna has been at risk of losing many of its manufacturing contracts, including the next-gen Porsche Boxster and Cayman. But Mercedes-Benz apparently isn't afraid of a little corporate cooperation with Magna, awarding the company's Austria-based Steyr unit the contract for construction of the 2010 SLS AMG's gullwing body.

The 2010 SLS AMG is a spiritual revival of the classic SL gullwing body-style, but with all the capabilities of a modern supercar. Its 571-horsepower, 479-pound-feet of torque V-8 engine, 48-52% front-rear weight distribution and seven-speed dual-clutch transmission put it right at the...

With a fresh majority stake in Opel, Magna has been at risk of losing many of its manufacturing contracts, including the next-gen Porsche Boxster and Cayman. But Mercedes-Benz apparently isn't afraid of a little corporate cooperation with Magna, awarding the company's Austria-based Steyr unit the contract for construction of the 2010 SLS AMG's gullwing body. The 2010 SLS AMG is a spiritual revival of the classic SL gullwing body-style, but with all the capabilities of a modern supercar. Its 571-horsepower, 479-pound-feet of torque V-8 engine, 48-52% front-rear weight distribution and seven-speed dual-clutch transmission put it right at the front of the class on paper. So that's a big score for Magna, as concerns over trade and design secrets being disclosed to what is now effectively a competing car manufacturer had looked to threaten much of Magna's contract work. The company's insistence that its contract manufacturing arm would be held completely separate from its new Opel operations side was taken at face value by Daimler CEO Dieter Zetche, however, according to Reuters. "Magna has stated and confirmed again and again that they would have two totally separate organizations with Chinese walls. When you go to a bank, you have to rely on those Chinese walls as well," Zetsche said. Mercedes-Benz isn't the only manufacturer to put serious trust in the company, however. Magna is also building the Rapide for Aston Martin. Construction of the SLS AMG is due to start soon, as the car will be available for purchase in early 2010, starting from €177,310 (approximately $260,000) in Europe. [Reuters] Read More

Aston Martin’s 2010 Rapide sedan is roughly half a year away from hitting showrooms but the automaker has released official images and details of the car, which has just been unveiled for the first time at the 2009 Frankfurt Auto Show.

First seen at the 2006 Detroit Auto Show in concept form, the production Rapide is nearly identical to the original show car however there are a few subtle differences. The production model loses the tiny side air intakes on the front bumper, while the sides pick up a new character line that runs almost the entire length of the body.

The signature elements of Aston Martin's design language translate well to...

Aston Martin’s 2010 Rapide sedan is roughly half a year away from hitting showrooms but the automaker has released official images and details of the car, which has just been unveiled for the first time at the 2009 Frankfurt Auto Show. First seen at the 2006 Detroit Auto Show in concept form, the production Rapide is nearly identical to the original show car however there are a few subtle differences. The production model loses the tiny side air intakes on the front bumper, while the sides pick up a new character line that runs almost the entire length of the body. The signature elements of Aston Martin's design language translate well to the four-door format, with key features such as the 'swan wing' doors--rising upwards and outwards as they swing open--being applied to both the front and rear apertures. Up back the car features LED tail lights, dual exhaust tips and a boat-tail style rear decklid spoiler. Under the hood is a revised version of the DB9's 6.0-liter V-12. This is mated to a  six-speed ZF automatic transmission with Aston Martin’s new Touchtronic 2 control with paddle shifters. Final output will rests at 470 horsepower and 442 pound-feet of torque so as not to step on the toes of the 510 horsepower DBS flagship. Performance isn't as spectacular as the Aston Martin coupe models but expect to see the 0-62 mph dash completed in 5.3 seconds and a top speed of about 188 mph. But the it's not supposed to be the out-and-out performer of the Aston range. "Rapide is the culmination of the Aston Martin range of sports cars, a car that seals the revival of a truly admired marque," said Dr. Ulrich Bez, CEO of Aston Martin. "There is now an Aston Martin for every taste and for every use. "With Rapide, the entire family can enjoy their Aston Martin together in unison, in an invigorating yet comfortable environment, sitting low, with plenty of visibility from every seat and with new levels of comfort, refinement and entertainment." The vehicle’s final curb weight is 4,299 pounds and its dimensions come in at 197.6 inches in length, 84.3 inches in width and 53.5 inches in height. The Rapide’s wheelbase also stretches about 10-inches more than the DB9, while its height is only about 2.5 inches taller. Inside, there’s generous seating for four adults and up to 26.5 cubic feet of storage. First deliveries of the Rapide will commence early in 2010 and will be available globally through Aston Martin’s 125 strong dealership network. Pricing will be confirmed following its debut in Frankfurt--expect it to slot somewhere between the DB9 and DBS at around $200,000. Read More

General Motors today announced that its Board of Directors supports a bid from the consortium of automotive parts supplier Magna International and Russian bank Sberbank to buy a majority stake in its European Opel (Vauxhall) operations.

Several key issues will be finalized over the next few weeks to secure the binding agreements, including the written support of the labor unions to support the deal, as well as the finalization of a definitive financing package from the German government.

The final agreements should be ready to sign within a few weeks, with closing to follow within the next few months. Under the deal, Magna and Sberbank will...

General Motors today announced that its Board of Directors supports a bid from the consortium of automotive parts supplier Magna International and Russian bank Sberbank to buy a majority stake in its European Opel (Vauxhall) operations. Several key issues will be finalized over the next few weeks to secure the binding agreements, including the written support of the labor unions to support the deal, as well as the finalization of a definitive financing package from the German government. The final agreements should be ready to sign within a few weeks, with closing to follow within the next few months. Under the deal, Magna and Sberbank will purchase a 55% stake in New Opel (the restructured company), while GM will retain a 35% stake and the last 10% stake reserved for Opel’s employees. The agreement will keep Opel a fully integrated part of GM’s global product development organization, allowing all parties to benefit from the exchange of technology and engineering resources. Read More

General Motors CEO Fritz Henderson has previously stated that a new buyer for Opel would be picked this year and that at least three different companies were still in the bidding. Those three companies included auto parts supplier Magna International, private equity group Ripplewood Holdings and Chinese automaker Beijing Automobile Co. (BAIC), however, late last month reports emerged claiming the German government and GM had failed to agree on a buyer though Magna is said to be the leading contender.

Now it appears that GM has a backup plan to keep Opel all for itself. Latest reports indicate that GM is considering a plan to raise funding to...

General Motors CEO Fritz Henderson has previously stated that a new buyer for Opel would be picked this year and that at least three different companies were still in the bidding. Those three companies included auto parts supplier Magna International, private equity group Ripplewood Holdings and Chinese automaker Beijing Automobile Co. (BAIC), however, late last month reports emerged claiming the German government and GM had failed to agree on a buyer though Magna is said to be the leading contender. Now it appears that GM has a backup plan to keep Opel all for itself. Latest reports indicate that GM is considering a plan to raise funding to keep Opel as an alternative to selling the unit. At a board meeting last Friday, GM directors declined to endorse a sale of Opel to Magna, sending the automaker back into negotiations this week with the German government. A person familiar with Magna’s plans previously revealed that the parts supplier had increased its bid for Opel, from the original 20% stake it envisioned, to 27.5%. Under the new plan, Magna and Sberbank, Magna's Russian partner, would own 55% of Opel--27.5% each--while the remaining 35% would go to GM and 10% would go to Opel employees. However, while GM remains focused now on trying to clear remaining issues with the Magna deal, executives also are considering other options, including raising more than $4 billion in a bid to keep Opel, sources said. To raise the necessary funds, GM could potentially sell or mortgage its assets in China. In the meantime, the German government is providing Opel with bridge loans to stay afloat while the bids continue to be studied. GM has also asked Germany for financial assistance for the brand. [Reuters] Read More

Holding company RHJ International has emerged this week as a strong challenger to Magna International in the bidding war for General Motors' Opel division. The Belgium-based industrial holding firm, which is linked to the U.S. buyout company Ripplewood, confirmed that it was in advanced talks to buy a majority stake in Opel and hopes to reach an agreement with GM by the end of this week.

Automotive parts supplier Magna International had long been seen as the front-runner for Opel and had aimed to sign a deal with GM by July 15, but with talks between the two companies suffering a hold up, newcomers like RHJ and China's Beijing Automotive... Holding company RHJ International has emerged this week as a strong challenger to Magna International in the bidding war for General Motors' Opel division. The Belgium-based industrial holding firm, which is linked to the U.S. buyout company Ripplewood, confirmed that it was in advanced talks to buy a majority stake in Opel and hopes to reach an agreement with GM by the end of this week. Automotive parts supplier Magna International had long been seen as the front-runner for Opel and had aimed to sign a deal with GM by July 15, but with talks between the two companies suffering a hold up, newcomers like RHJ and China's Beijing Automotive Industry Corporation (BAIC) are also vying for a piece of the Opel pie. RHJ waited until this week to confirm its interest in Opel because only now did it feel it was close enough to its goal to go public, spokesman Arnaud Denis explained to Automotive News. While Magna was seeking roughly $6.5 billion from the German government to secure the deal with Opel, RHJ only needs $5.3 billion, potentially making it the better suitor for Opel. Other groups still in the bidding for Opel include Fiat and Magna’s consortium partner Sherbank. Read More