GM Executive Hopeful Opel Sale To Magna Will Be Finalized

A General Motors (GM) executive Tuesday said he was hopeful that a deal to sell the U.S. car maker's German unit Adam Opel Gmbh to a Magna International Inc. (MGA) consortium would be finalized.

"We're at the start of a process that we hope will bring to an agreement. We're constantly meeting with Magna to finalize the details," said Dan Hancock, Vice President of GM Global Powertrain Engineering.

At the end of May, the German government chose Magna's consortium over an offer from Italian car maker Fiat SpA (F.MI) and pledged to provide EUR1.5 billion in bridge financing to keep the German auto firm afloat following the bankruptcy filing of parent GM in the U.S.

However, since then the German government has said that it hasn't closed talks with alternative bidders and Fiat has reiterated its interest in Opel. Last week, Italian Prime Minister Silvio Berlusconi said that the Fiat offer for Opel was "still on the table."

Asked whether there is a chance Fiat might still step in, GM's Hancock replied: "There are many factors to consider...But our primary focus now is the memorandum with Magna."

Hanckock was speaking at the official opening of GM's new engineering research center in Turin, Italy, where Fiat is based.

The U.S. car maker invested more than EUR25 million in building the center, from which it aims to develop a new generation of fuel efficient diesel engines and new advanced propulsion systems, such as diesel hybrids, which will improve fuel efficiency and reduce emissions.

-By Milena Vercellino, Dow Jones Newswires; [phone]; [e-mail]