But the new board of directors last week didn't name Magna and the Russian bank as the new buyers as they have reservations about GM's intellectual property falling into Russian hands.

Reports in the local media Tuesday quoted Fred Irwin, chairman of the German government-backed trust that owns 65 per cent of Opel, as saying that GM is still working on a 'commercially viable solution' for Opel. He said GM will make an announcement to sell Opel by the start of the Frankfurt auto show. He said the auto show is 'incredibly important' for Opel as it will present its new models.

GM vice-president John Smith also met officials on the German task force Tuesday, telling them the auto giant was working on its differences with the bidders on GM patents, financial liabilities, and keeping jobs.

He is likely to meet representatives from Magna Wednesday. Based at Aurora near Toronto, Magna enjoys the backing of the German government as it has promised to keep most European jobs.