VW Cancels Magna Contract For Next Gen Porsches

As you remember, the Opel takeover attempt made by Magna earlier this year made the German carmaker to threaten Magna with the cancellation of some contracts if the deal went through. The deal failed on GM's account, yet Volkswagen went through with its promise and announced it will no longer use Magna's services for the creation of the next generation Porsche Boxster and Cayman.

According to Piston Heads, the German carmaker will move production to the recently acquired Karmann factory in Osnabruck. The first models built here will hit the market in late 2011 or early 2012.

It is unclear how this recent decision will affect Magna, or if the move is the result of Magna's disobedience or just of the acquisition of German contract carbuilder Wilhelm Karmann's assets.

Back in September, Volkswagen warned Magna it will terminate its business if they succeed in taking over Opel. "If they really do go through with it, then we will withdraw business from Magna in which our development knowhow is included," Volkswagen head of sales and marketing Detlef Wittig said at the time. "We cannot leave our knowhow in the hands of a supplier that then uses this in his own automobile company."

As for the Karmann facility, Volkswagen intends to start production at Karmann’s main Osnabrueck in 2011. When the purchase was announced, VW did not mention which models they will produce at the plant.

Now, aside from the Cayman and Boxster, VW may build in Osnabruck an all-new VW Golf Cabriolet and a production version of the Bluesport Roadster concept.