Magna to Concerned Automakers: Don't Worry

The avalanche of negative comments coming from manufacturers across the world has been somehow addressed by Canadian supplier and manufacturer Magna, through the voice of one of its CEOs, Don Walker.

Talking for the Kyodo News in Japan, Walker confirmed the fact that the deal between his company and Opel will be ready in a few weeks and tried, as best as he could, to answer manufacturers like BMW and Volkswagen.

''We will have a complete separation of activities between Magna, parts company, and our investment in Opel,'' he said at a conference. ''I suspect it would be business as usual whether we make the investment in Opel or we don't.'

So far, no Japanese carmaker has publicly expressed its concerns about Magna Opel bid. The Canadians have contracts with five of the Japanese carmakers, all of whom now rest assured Magna will not make unlawful use of their technologies.

Still, in the absence of any coherent stand in the matter from Magna, Volkswagen continues its assault, in the latest outburst saying it will "withdraw business from Magna in which our development knowhow is included."

"We cannot leave our knowhow in the hands of a supplier that then uses this in his own automobile company," VW's head of sales and marketing Detlef Wittig said.

Their position was reinforced at the 2009 frankfurt Auto Show by BMW. According to BMW's chief financial officer Friedrich Eichiner, Magna is at risk of creating a conflict of interest for itself, which may force BMW to reconsider its position and its contracts with the supplier.