GM is also working on the sale of GM Europe to Magna International (MI). Magna International is a Canadian company based in Aurora, Ontario. It is Canada's largest automobile parts manufacturer and one of the country's largest companies. MI is a business to business company...with a name that is not well know to the public. They manufacturer parts for the Big 3 U.S. auto manufacturers in addition to Volkswagen, BMW, and Toyota.
The German government has requested that the GM subsidiary Opel be shielded from the parent GM's U.S. bankruptcy. The German government apparently be willing to put up 1.5 billion Euros($2.1 billion) for a bridge loan that would be repaid when the deal is closed.
It appears that Fiat has withdrawn from bidding on GM Europe, due to the German governments demand for emergency funds during the transition. Apparently, Fiat does not have the ability to fund the transaction.
Today, a memorandum of understanding was signed outlining a plan for the future ownership of the Opel and Vauxhall assets. The assets are to be transferred to a new company, which Magna International will take a 20 per cent stake and Sberbank, a Russian bank, will take a 35 per cent stake, giving their consortium a majority. GM will retain a 35 per cent holding, while the remaining 10 per cent will go to Opel employees.