Porsche to Scrap Magna Contract
Magna is assembling the Porsche Boxster and Cayman in Graz for the German manufacturer, as the two are under contract until 2013. Of course, giving up on the contract is the doing of Volkswagen, which will soon merge with the until now its major shareholder.
Even if for Magna Porsche's departure may be yet another devastating blow, the German industry may benefit from the move after all. Since the respective models will still have to be built, Porsche may turn to now bankrupt Karmann for the task.
At least this is the latest rumor in the industry. Karmann would have in Porsche the equivalent of the white knight, saving it from a certain doom. Currently lacking any manufacturing contracts, Karmann is struggling with the German equivalent of Chapter 11.
These latest rumors are based on the previous reports claiming Volkswagen is eyeing some type of partnership with the former builder of the Mercedes Benz CLK convertible. The German group is reportedly looking into ways to add Karmann to their portfolio for months now, with some
speculating even that Karmann may build electric vehicles for Volkswagen.
The dispute between Magna and Volkswagen has finally made Magna's officials pay attention and try to find common ground with their clients, as they are now said to try to arrange a meeting with Volkswagen.