GM contract prevents Magna from selling the Opels in America, China

Posted on Wednesday, 3 June 2009 , 10:06:09 byEmil

Filed under gmmagnasellopelamericauschinaGMOpelSaturn

GM contract prevents Magna from selling the Opels in America, China

Magna International inked a contract recently to buy Opel from GM, but the agreement terms will prevent the parts supplier (Canadian) from selling the Opel cars in 2 of the largest auto markets in the world.

Automotive News says GM’s Magna agreement is preventing Magna from selling the Opel auto in China and the United States. 'The agreement with General Motors does prevent us from selling Opel in the United States' Frank Stronach - Magna founder stated.

Stronach added this agreement blocks Magna also from bringing Opels in the Chinese territory, but hinted that the contract might not be for a long-term there. 'If it makes economic sense you might persuade people to change something' he affirmed. Magna was in the running also for the Saturn brand of GM – which stands currently as Opel import name brand, GM owned — but has right since that plan got abandoned.

Although Magna would not be able to put Opel cars in the U.S. market, that does not mean necessarily Opels would not be sold in America (in North). It's possible Magna would made and sell the Opel automobiles in Canada. GM retains also a 35 % slice in Opel, so you could see Opels sold still through 1 of the 4 four core brands of GM.