Auto parts maker Magna aims to build Opel cars in Canada in the coming years, but a deal struck with General Motors would keep them off US roads, chairman Frank Stronach said Tuesday.
The German government announced late Saturday it had concluded a deal with Magna and its Russian backers to take over Opel from its parent GM, which filed for bankruptcy protection in the United States on Monday.
Stronach, in Ottawa to unveil new electric vehicle technologies, said Opel would not compete with GM on its home turf in the United States, as part of the terms of Magna’s Opel purchase from GM.
But that could change after a few years, he also hinted.
In the meantime, Magna hopes to import Opel cars to sell in the Canadian market by year end, Stronach told the daily Toronto Star.
No timeline has been given on when Magna might actually start building the vehicles in Canada.
Stronach “has talked about building Opel cars in Canada, but there’s been no date fixed,” Magna spokeswoman Tracy Fuerst told AFP.
Stronach also told reporters he expects a restructured Opel with a new model lineup to break even in three years and return to profitability in four years.
Magna co-CEO Sigi Wolf said previously Opel could turn a profit as early as 2011.
