By on November 9, 2009

The Wolf. Picture courtesy zimbio.com

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.”

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5 Comments on “Magna Hearts GM...”


  • avatar
    John Horner

    Perhaps Magna realizes what a big bullet they dodged.

  • avatar
    pnnyj

    “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.”

    There are a bunch of Magna executives who are very aware (and happy) that GM just saved Magna from Frank Stronach’s irrational ambition to own a car company. Apparently Mr. Wolf is one of them.
     
    As for VW I don’t think they’ll have many problems with Magna going forward. They were afraid that Magna might actually manage Opel well in direct competition with VW.  That speaks to their respect for Magna’s operational abilities, something that VW would value in a supplier.

  • avatar

    don’t trust anything that involves John Smith. remember he was GM of Cadillac when they lied about beating Lincoln in 1998. he drove sales straight into the dirt as head of VSSM. why on earth he is even still employed at GM is a mystery. and he’s the guy we put in charge of negotiating Opel. no wonder everyone is upset…the German gov’t and workers, Magna, the Russians, etc…

  • avatar
    shiney2

    +1  John Horner

  • avatar
    Steven02

    What else do you expect them to say?  They work with GM already and want to keep that business going.

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