autoevolution
 

Volkswagen Warns Magna Not to Take Opel

After yesterday Canadian manufacturer Magna learned it will likely no longer produce Chrysler 300C and Jeep Grand Cherokee for Chrysler at its Magna Steyr facilities, another warning comes from Volkswagen.

This time however, the tone is much more aggressive. According to Autonews, Volkswagen head of sales and marketing Detlef Wittig said Volkswagen will terminate its business with Magna if the Canadians succeed in taking Opel.

"If they really do go through with it, then we will withdraw business from Magna in which our development knowhow is included," Wittig told the source. "We cannot leave our knowhow in the hands of a supplier that then uses this in his own automobile company."

This, however, is not the first warning sign coming from Volkswagen. Back in August, VW CEO Martin Winterkorn said just about the same things as the sales head said today. At the time, Opel’s labor union leader Klaus Franz, said it compares VW’s reaction to a form of blackmail. "The threat not to award Magna with contracts is tantamount to blackmail.”

The reason behind the avalanche of problems Magna began facing ever since it got involved in the Opel affair comes from the fact that it produces vehicles and parts for several manufacturers. For some, Magna building cars for them and at the same time owning its own brand is an insurmountable conflict of interest.

"The contracts being shopped around cover parts that auto makers feel separate their vehicles from others," a Magna supplier said in late August. "They just don't have clear evidence yet that their ideas won't find their way into Opel cars."
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
About the author: Daniel Patrascu
Daniel Patrascu profile photo

Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
Full profile

 

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories