GM and Magna: Still Friends
Magna’s abortive attempt at buying Opel burned a few bridges for its supplier business, most notably drawing the ire of Volkswagen. But now that the deal is off, Magna has been forgiven by VW, and it seems even GM is ready to bury the hatchet. Reuters reports that GM has awarded the manufacture of their 3rd generation frames for full-size light-duty pickups and sport utility vehicles to Magna’s division Cosma International. “This is the third generation of frame business that we’ve been awarded by General Motors,” said Tracy Fuerst, a Magna spokeswoman. “To keep that business is certainly a win for us.” Curiously, the value of the contract wasn’t disclosed and no new jobs would be created but it sent the value of Magna’s share up by 1.9%. Life, and business go on… meanwhile, this is the first sign that GM is actively investing in a new generation of body-on-frame vehicles.
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