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Germany to Magna: GM's Opel Is All Yours

By Neal Colgrass,  Newser Staff

Posted May 29, 2009 8:50 PM CDT

(Newser) – A Canadian auto supplier took a huge step toward acquiring GM's European brands today, the Wall Street Journal reports. Emerging from negotiations, Germany's finance minister approved Magna's merger with GM's German arm Opel, pledging about $2.1 billion to help keep Opel afloat. But details remain: Germany is still pushing to separate Opel and British Vauxhall from GM, so Berlin's billions don't end up in American pockets.

The acquisition poses new challenges to flamboyant Magna founder Frank Stronach, whose company will have to compete with its customers—major automakers who buy Magna auto parts such as seats and engine parts. The deal also forces Stronach to master "the marketing savvy" to "figure out what the public wants," one analyst said. "To my knowledge, they really don't have any experience marketing to end consumers."

Magna International Inc. Chairman Frank Stronach talks during a news conference in front of the Chancellery in Berlin, Thursday morning, May 28, 2009.
Magna International Inc. Chairman Frank Stronach talks during a news conference in front of the Chancellery in Berlin, Thursday morning, May 28, 2009.   (AP Photo/Franka Bruns)
German Finance Minister Peer Steinbrueck, right, and Hesse State Premier Roland Koch, left, report in front of the German Chancellery in Berlin on Friday night, May 29, 2009,  on the rescue of Opel.
German Finance Minister Peer Steinbrueck, right, and Hesse State Premier Roland Koch, left, report in front of the German Chancellery in Berlin on Friday night, May 29, 2009, on the rescue of Opel.   (AP Photo/Fritz Reiss)
German Economics Minister Karl Theodor zu Guttenberg, right, and other officials speak to the media in front of the German Chancellery in Berlin on Friday night, May 29, 2009.
German Economics Minister Karl Theodor zu Guttenberg, right, and other officials speak to the media in front of the German Chancellery in Berlin on Friday night, May 29, 2009.   (AP Photo/Fritz Reiss)
The logos of car brands Opel and Chevrolets are seen at a local dealer of troubled GM Opel in Ghent, Friday, May 29, 2009.
The logos of car brands Opel and Chevrolets are seen at a local dealer of troubled GM Opel in Ghent, Friday, May 29, 2009.   (AP Photo/Yves Logghe)
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