Opel’s Magna-nimous Decision



Things regarding the German government’s impending decision regarding the future of Opel look very similar to how they did last week. Only Magna and Fiat are being considered as serious contenders, and Germany’s Minister of Economics, Karl-Theodor zu Guttenberg, has requested that both parties present a formal plan for restructuring Opel within the week.

According to German newspaper Welt am Sonntag, sources close to Magna are quoted as saying that Opel under Magna would likely produce cars other than Opels at some of its factories. One of the major concerns that the German government has about any restructuring of Opel is that all its factories based in Germany remain open. Under Magna’s plan, they would—although some other Opel plants elsewhere in Europe might end up closing.

Fiat, meanwhile, has a plan that involves a merger between itself, GM Europe, and Chrysler. Not much has been said about this plan, and it’s not clear whether that’s because not much is known about this plan, or because most pundits seem fairly certain that Magna will be the ones to close the deal.

The German government has warned that if neither Magna nor Fiat come up with a plan that they consider feasible, bankruptcy for Opel is indeed still an option.