Unbeknown to most Americans is the connection between General Motors Corp.'s (NYSE:GM) Saturn brand and European nameplate Opel. Aside from the Saturn Outlook full-size crossover, Saturn's four other 2009 models have Opel analogs. So if Magna International Inc. (NYSE:MGA) wins the auction for Opel, might the connection between the brands continue?
If the Canadian auto parts maker buys Opel, it is widely expected to continue manufacturing cars at Opel's German factories, according to blog Monster & Critics, which translated German media reports from Welt am Sonntag. Evidently Magna has its eye on selling beyond Europe, but also for export primarily to Russia. However, is it a jump to assume that other markets are a possible target?
After all, Saturn dealerships are trying to buy the brand from GM and are expected to seek a partner to provide cars. A Magna-owned Opel would certainly fit the needs of Saturn dealers, noted a commenter on Autoblog. It does seem like a win-win situation given the two brands current connection.
However, before an Opel-Saturn tie-up could be consummated under a Magna partnership, the Canadian company has to beat Fiat SpA in the Opel auction. Additionally, the dealer group led by Roger Penske's Penske Automotive Group Inc. (NYSE:PAG) isn't the only bidder for Saturn. Renault SA is also rumored to be interested. Even if those obstacles are overcome, cross-border partnerships in the industry have a history of conflict, notes The Deal's Corporate Dealmaker.
For more on the auctions, see The Deal Pipeline's Opel auction profile and Saturn auction profile. - Matthew Wurtzel
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