Reports suggest that General Motors and Canadian car parts group Magna International have reached an agreement in principle for the sale of Opel and Vauxhall, GM’s German- and UK-based brands.
The two sides have been trying to agree on a memorandum of understanding that would serve as the basis for bridge financing of 1.5 billion euros ($2.1b), as well as a solution that would protect Opel from creditors if GM files for Chapter 11 bankruptcy protection.
“A framework agreement has been reached. The goal is to work out as many of the details as possible before the meeting with (German Chancellor Angela) Merkel in order to sign a memorandum of understanding today,” a source told the Reuters news agency.