Germany picks Magna to buy Opel
The German government has decided to pump in nearly 2.1 billion dollars into Magna , the largest Canadian Automobile parts maker, to buy Opel, as part of the GM restructuring deal. Fiat italy was also in the fray , but with the German government and the US government in favor of Magna, the deal is now no more available for Fiat.
Even with the deal on, GM is expected to lose over 11000 jobs with over 2600 jobs in Germany alone. Both US and German government are taking a big bet on the success of the restructured GM, which is not certain.