Create a free Manufacturing.net account to continue

Magna Expects Opel To Turn Profit In 4 Years

Chairman of the auto parts maker says he expects the newly acquired Opel unit in Germany will break even in three years and turn a profit in four years.

OTTAWA (AP) -- Magna International Inc. chairman Frank Stronach says he expects the newly acquired Opel unit in Germany will break even in three years and turn a profit in four years.

Stronach said Tuesday in Ottawa that he expects to turn money-losing Opel around financially and expand the German carmaker's markets to Russia and other parts of the world.

Magna, headquartered north of Toronto, is Canada's largest auto parts maker with 74,000 employees in 25 countries.

The company announced plans to buy control of Opel over the weekend from General Motors Corp., with the help of the German government. Magna will take a 20 percent stake in Opel while its partner, the state-controlled Russian lender Sberbank, would get 35 percent. GM retains 35 percent.