September 10, 2009
Frank Stronach must be a happy man today as his long held dream of becoming a major car manufacturer is now realized. Magna international, the company he created has as of this morning along with the Russian company Sberbank won control of the Opel car company headquartered in Germany.Magna will own 55 % of the company , GM retains a 35 % interest. The deal which GM has now approved as well as the German government, should over time result in the preservation of a key part of the German car industry and the expansion of the company into sales throughout Europe including Russia . The new ownership structure which includes a Russian partner should be good news in terms of broadening consumer choice throughout Europe.Opel also owns Vauxhall, a popular brand in the U.K. It should also benefit the Canadian auto industry since Stronach has plans to expand the company's operations in Canada. It is also for the time being a good deal for GM which was having trouble with the Opel division.
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