After scraping by owning Opel together with alleged Russian mobsters, Magna has given up aspirations of being a car company. Magna wants to “focus on its core competencies,” and will continue to be a supplier and contract manufacturer. This is what Magna’s Co-CEO Siegfried Wolf said to Germany’s Handelsblatt.
Magna’s cozying-up with GM continues. “We have contracts from GM, and there is no reason why we should not get new ones,” Wolf said. Then, the ultimate brown-nosing is perpetrated:
“The basis of all business is trust,” said Wolf. “In the recent months, a solid basis has been developed, which can act as the foundation for increased business.”
GM built up trust with Magna by withdrawing from the Opel deal? According to Opel’s own workers’ council chief Klaus Franz, “GM does not enjoy any credibility or faith in the eyes of the public or the (German) government.” But Magna and GM have built a solid foundation? It is getting curiouser and curiouser.
What Magna has lost is the trust of Volkswagen. Magna had won the contract to build the next gen Porsche Boxster and Cayman in Austria. This contract is now up in the air. Wolf said that VW has ample free capacities, and “there will be talks to hand the contract back.”