Magna sees $3.3 billion swing at Opel by 2014: report

Thu Jun 4, 2009 12:25pm EDT
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FRANKFURT (Reuters) - Magna plans to improve Opel's annual earnings by $3.3 billion over the next five years as part of a business plan to take over the European carmaker, the Frankfurter Rundschau reported on Thursday.

A forecast $2.1 billion loss for 2009 would swing to a $1.2 billion profit in 2014, the German daily wrote, citing elements of Magna's business plan it obtained.

Volume, price and mix effects would contribute $1.9 billion, while another $1.4 billion would stem from lower material and personnel costs following a restructuring of the company, the paper reported.

A spokesman for Magna declined to comment.

(Reporting by Christiaan Hetzner; Editing by Hans Peters)

<p>Magna co-Chief Executive Siegfried Wolf (R) and GM Europe President Carl-Peter Forster attend a news conference after talks in the headquarters of German car manufacturer Opel in Ruesselsheim June 3, 2009. REUTERS/Johannes Eisele</p>