Ht News: Magna Buys Vauxhall

Canadian car parts firm Magna has bought Opel and Vauxhall, the German government has announced.

A further statement is expected later today from previous owner General Motors, and the Opel Trust, which must also approve the deal.

The news will be a relief to many working for the firm. It had earlier been suggested that GM would work to hold onto the two companies, a move that would likely to have led to wide ranging job cuts for the firm.

Magna, on the other hand, has pledged to keep all German car plant open – a commitment that won it the support of the German government.

UK Business Minister, Pat McFadden also gave the news a cautious welcome, commenting: “Our objective throughout has been to get the best possible outcome for the Vauxhall workforce and the production plants in the UK.

We have been in close contact with all parties throughout including GM in the US and Europe and all the potential bidders.

Now GM has announced its preferred bidder is Magna. We will now continue our discussions with Magna: they have told us of their commitment to continuing production at both Ellesmere Port and Luton and we will work to make sure we get the best possible outcome for the UK.”

The bidding process, which began earlier this year, is reported to have attracted interest from a wide range of parties including Belgian investment group RHJ. For more details click here.

Thanks to: Auto Express