2009 Opel Insignia Sedan

2009 Opel Insignia Sedan

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.