Magna Stiffed By VW, Wants Moolah
Last year, Porsche gave Magna an eight-year contract to build the Cayman and Boxster models from 2012 on. Magna engineers immediately went to work and toiled with tricky tasks, such as the stiffening of the Boxter’s body. Which they say wasn’t, well, stiff enough. Then Porsche went to Volkswagen. Then Opel came and went. Finally, Volkswagen bought parts of bankrupt Karmann and needed to use the capacity. Cayman and Boxster will be built in Osnabrück, Instead of the Boxster body, Magna was stiffed and asked to pound sand.
Not exactly. Magna is pounding the table and wants money. €400m in restitution at least, reports the Austrian Wirtschaftsblatt. As payment for work invested into the new Porsche generations. Volkswagen and Magna are involved in “intensive negotiations” writes the Austrian paper. Other than moolah, Magna would also entertain the thought of getting assignments that make up for the cancelled contract.