Magna Says It Won't Mix Parts and Cars Businesses

Magna International, the new Opel owner as some reports are indicating - in spite of official statements that the German government is still taking with other investors - says it does not intend to mix its parts and car businesses in case the deal will indeed go through. Co-CEO Donald Walker told Reuters in an interview that the company is still analyzing the way it should separate the two sectors of the industry.

"We do understand Magna is an auto parts company and Opel is a car company so if we complete this than we have to have a complete firewall between the two business units and that is under discussion right now," Walker said.

Furthermore, he revealed that this is a proper time for acquisitions because many companies are now struggling to cope with the recession which obviously creates good opportunities in the market. "We are seeing a lot of more reasonably priced opportunities for acquisitions," Walker explained.

Talking about Magna's evolution during these recession times, Walker explained that following the collapse of some companies, the Canadian - Austrian parts manufacturer might record a boost in demand, which translates into increased production and higher demand.

"There is a lot of discussion about taking on extra work to support ongoing production," Walker said. "It's been painful, but in the next couple of months I would expect to see production levels start rising again and hopefully we can get back to profitability."

Under the terms of the agreement, Magna International would get a 55 percent share, together with Russian's largest lender Serbank while General Motors will maintain control of a 35 percent stake. The remaining 10 percent will go over to Opel 's employees.