Ontario-based Magna International Inc., who is a major parts supplier for companies like GM, Ford and Chrysler, is said to have invested $400 million in electric vehicle research and development, said the province’s government.

Magna and Ontario’s Economic Development Minister Sandra Pupatello are expected to announce this new investment sometime this afternoon.

The new investment is expected to create more than 700 jobs and maintain about 1,300 at Magna’s facilities throughout Canada.

- By: Chris Chin

Source: Globe and Mail

Pininfarina Sintesti Concept

Pininfarina, the Italian design house responsible for numerous Ferraris, Alfa Romeos, Maseratis, Lancias, isn’t doing so well. Earlier this month, Pininfarina’s quarterly earnings report said that the company could be sold as early as Dec. 31.

Sources now tell Automotive News Europe that Canadian-Australian parts supplier Magna International Inc. is weighing options to by the design house.

Magna, which is always looking to strengthen its position as a global supplier of design, engineering and contract manufacturing, seems to be constantly looking to buy something in the automotive industry. It has even made bids to automakers… without success.

Magna failed to purchase Aston Martin from FoMoCo when the luxury sports car manufacturer was up for sale and most recently failed to acquire Opel from General Motors.

- By: Omar Rana

Source: Automotive News (Subscription Required)

Magna Milan EV Concept

Battery manufacturer Magna is talking with Japan”s GS Yuasa Corp. about producing lithium ion batteries to supply PSA/Peugeot-Citroen SA, and possibly BMW and Ford. The two companies are considering a $466 million factory in Spain or Austria, likely to start producing batteries in 2012, at a high enough capacity to power 50,000 cars per year.

GS Yuasa already supplies lithium-ion batteries for Mitsubishi for use in the i-MiEV, the world’s first electric car from a major automaker.

Magna would most likely hold a minority stake of between 20 and 40 percent of the venture, with GS Yuasa holding the rest. Analysts say that venturing outside of the company”s partnership with Mitsubishi is a positive step, and will allow GS Yuasa to broaden its customer base. The company said last year that it aims to boost its annual sales of lithium-ion batteries more than 30-fold, to 100 billion yen ($1.1 billion) by March of 2016.

- By: Stephen Calogera

Source: Automotive News (Subscription Required)

Magna Milan EV Concept

Battery manufacturers are all scurrying to secure for themselves, a relevant role in the impending boom in electric vehicles. Magna International Inc., is one such company; the Canadian company is actively seeking locations to produce batteries for electric vehicles.

CEO Siegfried Wolf has said that $200-$300 million has been earmarked for each of two factories- one in the U.S. and one in Europe.

Magna started a new business earlier in the year whereby they will focus exclusively on electric cars, producing battery units as well as complete vehicles. The company’s E-car business is a joint venture with Magna’s founder Frank Stronach and is part of a deal that will reduce his direct influence on Magna.

Wolf said that the decision about where to build the battery factories would come by year”s end. He said the company will begin serial car production in 2012 or 2013.

- By: Stephen Calogera

Source: Automotive News (Subscription Required)

Canadian company Magna International is requesting at least 400 million euros in compensation from Porsche AG for their cancellation of a contract in which the former would produce the latter’s Cayman and Boxster model sports cars in its Austrian factory.

Porsche, which is currently in the process of merging with Volkswagen Group AG, seeks to cancel the contract, but Magna has already done 400 million euros worth of development in their factory towards the project.

The original contract called for Magna to build the two models for eight years, starting in 2012.

-By Stephen Calogera

-Source: Reuters

General Motors’ board of directors said today that it will keep Opel and restructure it, putting an end to plans to sell the brand to Magna International. GM said that it expects the restructuring of Opel to cost 3 billion euros ($4.42 billion USD), which it says lowers the costs associated with outside bids for the brand.

“Given an improving business environment for GM over the past few months, and the importance of Opel/Vauxhall to GM”s global strategy, the GM Board of Directors has decided to retain Opel and will initiate a restructuring of its European operations in earnest,” GM said in a statement.

“We understand the complexity and length of this issue has been draining for all involved,” CEO Fritz Henderson said. “However, from the outset, our goal has been to secure the best long-term solution for our customers, employee, suppliers, and dealers, which is reflected in the decision reached today. This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall’s long-term future.”

Magna had no comment on the GM decision.

- By: Omar Rana

According to a report by Frankfurter Allgemeine Zeitung, Germany’s new government will take a new look at the sale of General Motors’ Opel unit to Magna International and may consider an arrangement where the brand remains with GM.

“The new government will take another look at decisions made up to now on Opel and imminent conditions to be set by the European Commission,” trust member Dirk Pfeil told the newspaper.

“The result could be a solution where Opel stays completely within the General Motors group,” said Pfeil, who is a member of the Free Democrats (FDP), coalition partners to Chancellor Angela Merkel’s conservatives in the German government which will be sworn in later this week.

GM’s board of directors will meet on Nov.3 to reconsider the deal.

- By: Omar Rana

Source: Reuters

According to sources close to the negotiations, General Motors Company will sign a deal on Thursday to sell a majority stake in Opel to Magna International. It was confirmed about a month ago that under a new deal, Magna and Sberbank will own a 55 percent stake in Opel, while GM will hold a 35 percent stake and employees will get a 10 percent stake.

CEO Fritz Henderson said that a deal on the sale of Opel could come this week, reports Automotive News.

Magna is expected to cut as many as 10,500 jobs at Opel in Europe, with nearly half of those coming from Germany.

- By: Omar Rana

Magna International has received an exclusive order from Daimler AG to build the new Mercedes-Benz SLS AMG, a sign of faith that the Canadian company’s fifth-largest customer will not pull business from it as it plans to take over Opel.

Magna said that its Magna Steyr unit based in Austria’s Graz, where the Mercedes-Benz G-Class is built, would develop the aluminum bodies for the upcoming 2011 SLS AMG.

“We can be proud that we are the only supplier in Europe able to manufacture a body made only out of aluminum — that underlines once more our leading position in challenging and innovative technologies,” Magna co-CEO Siegfried Wolf said in a statement.

Just last month, Porsche threatened to cancel its existing contract with Magna to build the next-generation Boxster and Cayman as Magna moves forward to acquire GM’s Opel brand.

Click here for more Mercedes-Benz SLS AMG news.

2011 Mercedes-Benz SLS AMG:

- By: Kap Shah

Source: Reuters

Porsche has threatened to pull its existing contract with Magna to build the next-generation Boxster and Cayman in Austria starting in 2013. The Stuttgart automaker said that it may instead move production to Karmann in Germany. The move comes as Porsche aims to guard its engineering and production cost secrets for its upcoming roadster and coupe.

Insiders said that the plans to build the Boxster and Cayman in Austria are being heavily reviewed following Magna’s bid to take control of General Motors Opel brand.

At the 2009 Frankfurt Motor Show, Volkswagen CEO Martin Winterkorn said that the German automaker, which is in the process of purchasing 49 percent of Porsche, may be forced to look for new engineering partners if Magna’s bid to buy Opel is successful.

BMW officials said that they are also studying whether “plans to build the Mini Crossover at Magna could be advantageous to Opel.”

- By: Kap Shah

Source: AutoWeek

According to Magna’s co-chief executive Siegfried Wolf, Magna International plans to cut as many as 10,500 jobs at Opel in Europe, with nearly half of those coming from Germany.

Speaking to reporters at a press conference earlier today, Wolf said that the cuts were a part of the Canadian company’ plans for Opel.

GM announced last week that it will a 55 percent stake in Opel to Magna, while keeping 35 percent to itself and giving employees a 10 percent stake.

- By: Omar Rana

Source: Detroit News

After months and months of debates and discussion, GM has finally announced today what it plans on doing with Opel. The Detroit automaker said that under a new deal, Magna/Sberbank will own a 55 percent stake in Opel, while GM will hold a 35 percent stake and employees will receive a 10 percent stake.

GM said that many key issues have yet to be finalized to secure the binding agreement, including the written support of labor unions to support the deal.

GM said that the agreement will keep Opel/Vauxhall a “fully integrated” part of GM’s global product development organization and that the current portfolio of vehicles in the pipeline are a strong basis for Opel’s future success.

Make the jump for the press release for full details.

Press Release:

GM Board Recommendation to Sell Majority Stake in Opel/Vauxhall to Magna International/Sberbank

* GM to sell 55% stake in New Opel to Magna/Sberbank
* Agreement on new ownership structure signals fresh start for New Opel
* Employees to hold 10% stake in New Opel
* Government supports financing through additional state guarantees

Zurich. General Motors today announced that its Board of Directors supports a bid from the consortium of Magna International Inc. and Sberbank to buy a majority stake in its European Opel/Vauxhall operations.

Several key issues will be finalized over the next few weeks to secure the binding agreements, including the written support of the labor unions to support the deal with the necessary cost restructuring for viability and the finalization of a definitive financing package from the German government. The definitive agreements should be ready to sign within a few weeks, with closing to follow within the next few months. Under the deal, Magna/Sberbank will purchase a 55 percent stake in New Opel; GM will hold a 35 percent stake and employees will be provided a 10 percent stake.

“The hard work over the past two weeks to clarify open issues and resolve details in the German financial package brought GM and its Board of Directors to recommend Magna/Sberbank,” said Fritz Henderson, GM President and CEO. “We thank all parties involved in the intensive process of the last few months — especially the German government — for their continued support that enables this new venture. I”d also like to thank the Opel and Vauxhall customers for their continued loyalty. GM will continue to closely collaborate with Opel and Vauxhall to develop and produce more great cars, such as the new Insignia and the new Astra,” Henderson added.

The agreement will keep Opel/Vauxhall a fully integrated part of GM”s global product development organization, allowing all parties to benefit from the exchange of technology and engineering resources. The new ownership structure constitutes a new lean, efficient and independent organization for the Opel and Vauxhall brands. The current portfolio of Opel/Vauxhall cars and the models in the pipeline are a strong basis for future success.

Participating in GM”s global technology development and purchasing organizations secures important economies of scale for Opel/Vauxhall and other GM brands. For example, vehicles that represent new propulsion technologies, such as the Ampera extended-range electric vehicle, can only be brought to market in a joint effort.

“GM operates many joint ventures around the world and has proven in the past that this business model delivers the right balance of independence, innovation and synergies,” said John Smith, GM Group Vice President Business Development. “All parties will work hard to close the deal as soon as possible,” he added.

- By: Stephen Calogera

General Motors Company has no intention of reopening the sale process for its Opel brand and wants to complete a deal with one of the two remaining bidders as soon as possible. CFO Ray Young said yesterday that the automaker is looking to wrap up the sale as quick as possible even though GM’s financial position is no longer in immediate threat.

Magna International and Belgium-based investor RHJ International are in the race to buy Opel from GM. Berlin has shown its support for Magna’s offer.

Separately, RHJ improved its bid by stating that it will ask for less than 3 billion euros ($4.25 billion) of state aid as part of a bid for Opel.

- By: Omar Rana

Source: Reuters

Chinese automaker Beijing Automotive (BAIC) has reportedly submitted a bid to buy a stake in General Motors’ Opel brand. The move challenges Canadian auto parts supplier Magna’s bid, which has reportedly been on the rocks as of recent. Sources familiar with the matter told Reuters, that BAIC submitted an indicative, non-binding offer for Opel and would make a binding offer by mid-July.

Magna International, the frontrunner to buy Opel, hopes to have an approved business plan for Opel on July 7, sources said.

Fiat and Chrysler Group LLC CEO Sergio Marchionne recently said that he heard talks with Magna were “not going very well. “We have confirmed our interest,” he added.

Marchionne said that Fiat’s current bid for Opel is the best it could offer.

- By: Omar Rana

Source: Reuters

Fiat CEO Sergio Marchionne said that it’s existing bid for Opel was the best it could offer. His statement comes following conflicting reports about the status of Magna International’s deal to buy Opel for General Motors.

“I don’t believe we could improve Fiat’s offer. It’s the most rational one we can put forward from an industrial viewpoint,” Marchionne said told reports on Friday.

Fiat made a bid for Opel last month, but did not continue into a second round of talks. GM and Magna International reached a preliminary deal in May. GM of Europe even secured approval for a €1.5 billion bridge financing agreement with the German government based on the partnership with Magna, allowing it more time to finalize the partnership agreement.

Fiat CEO Marchionne said he had heard talks with Magna were “not going very well,” and added. “We have confirmed our interest.”

Magna and GM hope to finalize a deal and close the sale of a majority stake in Opel by September.

- By: Omar Rana

Source: Reuters

It seems like Opel’s sale to Canadian auto parts group Magna International isn’t final just yet. According GM’s CEO Fritz Henderson, GM of Europe is willing to broaden discussions if necessary.

“We’re just negotiating, we don’t have an exclusivity agreement (with Magna), so we are open to discussion with others,” Fritz said. ”We are spending a lot of time with Magna trying to negotiate a more definitive agreement,”

Under the agreement, Opel/Vauxhall assets have been pooled under Adam Opel GmbH, with a majority of those shares being put into an independent trust.

Dieter Althaus, premier of the eastern German state of Thuringia said that offers by other potential Opel investors provided no real alternative to the Magna deal.

- By: Omar Rana

Source: Reuters

According to the chairman of Magna International, the Canadian auto parts company is banned from selling Opel cars in the U.S. and China.

“The agreement with General Motors does prevent us from selling Opel in the United States,” Frank Stronach told reporters at a news conference in Ottawa.

Prohibition on selling Opels in China might be flexible in the future if it makes economic sense.

Stronach said that Magna has been talking to the Canadian government for funding a project to produce electric-systems for electric-vehicles that it may produce in the near future.

“I’m very confident that Magna will be amongst the leaders in selling and building electric cars,” Stronach told reports.

No word on whether Magna will electrify Opel with a lineup of electric-cars; although, we wouldn’t doubt it.

- By: Kap Shah

Source: Reuters

GM of Europe announced today that it will continue to operate normally and is not included in the Chap. 11 bankruptcy filing made today by its U.S. parent. It said that it has secured approval for a €1.5 billion bridge financing agreement with the German government based on the partnership with Magna, which will allow for more time to finalize the partnership agreement.

“This has been a very intense and at times difficult negotiation over the past several days,” said GM Europe President, Carl-Peter Forster in a statement. “The process for a future partnership in Adam Opel GmbH has moved a critical step forward with the MOU reached with Magna International, whose leadership has shown strong commitment to this project. With the financing, even with the GM actions in the U.S., we can now confidently say to our employees, customers, suppliers and dealers that it’s business as usual as we go through the process of creating a new, more independent Opel/Vauxhall.”

Under the agreement, Opel/Vauxhall assets have been pooled under Adam Opel GmbH, with a majority of those shares being put into an independent trust.

- By: Omar Rana