BREAKING: GM and Magna reach preliminary deal

According to a report by Reuters, GM and Canadian auto parts group Magna International have reached a preliminary deal to invest in Opel, increasing hopes for a deal with the U.S and German governments to save the brand. The move also kills Fiat CEO Sergio Marchionne’s dream of building the world’s second-largest automaker consisting of GM’s European operations and its new stake in Chrysler LLC.

Source said that Magna and GM are working out the final details of an agreement before they meet with Chancellor Angela Merkel and senior ministers.

“We have an agreement in principle between GM and Magna,” one source said.

Nonetheless, party-pooper German Economy Minister Karl-Theodor zu Guttenberg, who previously said that Fiat and Manga need to make their proposals more attractive and assume more risk, told reports that there is no guarantee a deal to save Opel could be reached Friday.

– By: Omar Rana

Source: Reuters