Agreement with GM prevents Magna from selling Opel cars in the U.S.

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