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Putin Expects Magna To Join

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Putin Expects Magna To Join
Putin Expects Magna To Join

Video: Putin Expects Magna To Join

Video: Putin Expects Magna To Join
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Despite the recent offer from the Chinese car maker BAIC, Russia's Prime Minister Vladimir Putin believes that Magna will take over Opel. The race is practically decided.

According to IG Metall boss Berthold Huber and Russian Prime Minister Vladimir Putin, the bidding war to join Opel has been decided in practice. "I have no doubt that Magna and its Russian partners will win the contract," said Huber on Tuesday to the German press agency dpa after a conversation with the head of government. He agreed with Putin on that.

BAIC intensifies efforts

Meanwhile, the Chinese car maker BAIC is stepping up the pressure with a new offer. The previous Opel parent company General Motors (GM) is now increasingly considering BAIC (Beijing Automotive Industry Corporation) as an Opel buyer again, according to a newspaper report. However, observers do not rule out that GM's flirtation with the Chinese is primarily about improving its negotiating position with Magna. The Austrian-Canadian supplier is demanding, among other things, exclusive rights for GM's Russia business with the Chevrolet brand.

The "Wall Street Journal" reported on Monday, citing an insider, that BAIC's revised offer had a volume of around 660 million euros. With 2.64 billion euros, the Chinese carmaker wants significantly fewer state guarantees than Magna with 4.5 billion. GM is now more open to a possible deal with BAIC.

New plant in China

According to information from the "Financial Times", BAIC wants to build a new plant in China for the equivalent of 1.4 billion euros if the car manufacturer wins the contract. Until then, BAIC wants to sell Opel cars made in Europe in China. The Chinese wanted to close the Belgian plant in Antwerp, writes the newspaper. The chairman of the Opel general works council, Klaus Franz, had decidedly rejected BAIC several times. "They only want technology and have absolutely no experience in the global automobile market," he emphasized last week.

Franz continues to hope to reach an agreement with the Austrian-Canadian supplier in mid-July. "Opel becomes independent, with shares from GM, Magna, Sberbank and the employees," he told the "Wiesbadener Kurier" (Wednesday). Magna presented the most convincing industrial concept of all bidders.

Sberbank's participation reaffirmed

Putin reaffirmed the Russian stake in Sberbank and at the same time made it clear that Opel production lines would have to come to Russia over time, Huber told the dpa. The industrial concept for “New Opel” lies solely with Magna. The automotive supplier plans to produce 170,000 units a year from 2010 onwards at the main factory of the Russian manufacturer GAZ in the Volga city of Nizhny Novgorod.

Five models are to be produced there by 2014. Magna also wants to expand production at the previous GM plant in Saint Petersburg.

"Opel new "needs this market," said Huber. It is therefore clear that further investments must also take place in Russia. “You can't just supply this market from outside. The import tariffs, which were sharply increased during the economic crisis, speak against this. " Huber met with Putin on Tuesday as chairman of the International Metalworkers' Union (IMF) on a trip to Russia.

The competition for Opel has entered the hot phase and the pressure on everyone involved is growing. The auto supplier Magna, with whom the previous Opel parent GM has already agreed a letter of intent, sees itself on the home straight. Next Tuesday, the Magna board of directors should clear the way for entry. Just one day later, Magna managing director Siegfried Wolf wants to sign a legally binding contract with GM. But the US group should continue to be open to competing offers from BAIC and the investment holding company RHJ International. (dpa)

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