Magna to buy GM Europe

Canadian auto parts maker Magna, which had provided what some considered the most attractive offer for Chrysler less than two years ago, has now reached an agreement with General Motors to buy GM Europe (Opel and, in England, Vauxhall). The deal must be approved by Germany, which will be providing over $1.4 billion in loans to support Opel.

General Motors has brought several Opels into the United States, and while some have been a critical success (such as the Cadillac CTS), losing Opel will probably not have a dramatic impact on GM’s American operations.

Opel has long had its own design and engineering capabilities, and has run in parallel to General Motors’ American operations. Rick Wagoner had recently planned to divide engineering between GM’s Australian, American, Asian, and European divisions.