Volkswagen - Magna Benefits from Opel Decision

GM's decision to scrap the sale of Opel helps the future of the Volkswagen - Magna collaboration as the German carmaker raised concerns that a potential deal could influence its own business. Volkswagen representatives said in an interview for the German publication Bild that the company will continue to work with Magna as usual, as long as the Canadian - Austrian partsmaker doesn't become a competitor.

"If Magna doesn't act like a competitor, we will continue to do business as usual," a spokesman said.

Volkswagen said in June that a deal between Magna and Opel might influence the auto industry as the Canadian - Austrian partsmaker already holds supplying contracts with several automakers around the world.

"Volkswagen will monitor this development very closely," spokesman Michael Brendel was quoted as saying by gasgoo.com back in June. "Tax money has been used to a large extent for Opel's rescue. We hope that through this a sustainable and successful result will be achieved effectively."

"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 added.

Magna replied in a positive manner and said it is willing to discuss with the concerned automakers and assure them that it won't mix the supplying business and the auto sector.

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