GM seeks deal with Magna in Russia

• Source: Global Times
• [11:10 November 09 2009]
• Comments

General Motors Co. is trying to work with Canadian parts supplier Magna International Inc. on a three-way Russian auto production business, according to the Detroit News.

Last week, GM officials said they hope to negotiate with Magna and Russia's No. 2 automaker GAZ after the US automaker decided not to sell the majority stake in Opel to Magna and its Russian financial backer Sberbank last Tuesday.

"I see us being able to pick up with Magna and GAZ and continue to try to develop this business -- but obviously now as part of a GM-retained Opel, not as part of a Magna-Sberbank consortium," GM Group Vice President John Smith, the chief negotiator of the Opel deal, told reporters last week.

Talks on such a deal began three years ago, but stalled after GAZ owner Oleg Deripaska encountered financial trouble, followed shortly thereafter with GM's bankruptcy.

Agencies and Shi Jierui contributed to this story