I was drinking my morning cup of coffee here in Moscow, Russia. I have been following the details of the Opel acquisition by Russia.
Russia’s biggest lender Sberbank and automotive giant GAZ – along with Canadian car parts firm Magna – are to buy Opel from US motor giant General Motors, which is filing for bankruptcy.
The Western press has been hard pressed to give any details about this transaction since it looked like Russia was going to get the Car company. All the Western media can say is that a Canadian parts firm is in the running for the car company and somehow leave out the most important part. Russian money from Sberbank.
So lets get a few facts known:
Russia’s Sberbank will take a 35% stake in Opel while Magna (Canada) will have a 20% stake (55% total). General Motors will retain a 35% holding, the remaining 10% will go to Opel employees. All four Opel factories in Germany will remain in operation while Russian car maker GAZ will produce over a million vehicles in Russia and Eastern Europe.
The situation is also set up with built in protection for Russia in case GM goes bankrupt and that looks to be happening at this moment. The protection keeps GM from taking the European Opel down the tubes as the American company goes belly up and sinks.
This is a great opportunity for GAZ to acquire modernization technicalities and a 1 million vehicles will be built by GAZ.
So Russia in the East, has now acquired another major chunk of the world’s Industry.
Lets hope it works out!
Windows to Russia!
comments always welcome.