Vw to withdraw business from Magna if Opel take over is completed

In another case of a supplier transforming into a threat is Magna International’s takeover of Opel with Russian partner Sberbank. Volkswagen said that it will withdraw business from Magna if the takeover pushes through.

Detlef Wittig, Volkswagen’s head of sales and marketing, said that its business with Magna involves development know-how and so it cannot permit that this will get into the hands of a supplier that could use this in its own automobile company. In fact, Volkswagen AG Chairman Ferdinand Piech has said he wouldn’t want to see one of its major suppliers become a competitor. In recent news, General Motors Co. agreed to sell to Magna and its partner, state-controlled Russian lender Sberbank, a 55% stake in Opel in a deal that is expected to be finalized by the end of November.
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Joe_Limon - 9/24/2009 10:32:03 AM

+3 Boost

If they follow through with this threat, VW parts are gonna cost even more. Magna is able to produce cheap parts because they make everything for everyone. A new player won't be able to spread associated manufacturing and research costs to multiple companies...

tango - 9/25/2009 10:30:07 PM

+1 Boost

VW is just bitching. There was nothing stopping Magna from selling VW secrets to Opel prior to the buy out. Why would they start stealing technology now? Look how many manufacturers GM makes transmissions for. Aisin transmissions is owned by Toyota and they have supplied GM themselves as well as Ford. The turbocharger in the Subaru Impreza WRX is made by Mitsubishi, their biggest rival in the sport compact arena. Eveybody is doing something for somebody else. I WISH they would stop burdening Magna with their bullshit over-engineered, under-developed crap.