German antitrust regulators have blocked Magna’s takeover of Karmann’s roof division

Article by Christian A., on August 26, 2010

To avoid a scenario where there's a lack of competition, Magna International Inc.'s planned takeover of bankrupt supplier Wilhelm Karmann GmbH's roof division was blocked by German antitrust regulators.

Last Wednesday, Andreas Mundt, president of the German Federal Cartel Office (FCO), said that the market in Europe for convertible roof systems is "already highly concentrated."

He thinks that a Magna-Karmann tie-up would mean that there would only be two big providers. They worry that if the acquisition were allowed, the market for convertible roofs would be dominated by Magna/Karmann and Webasto. The Germany-based Webasto had recently acquired the roof unit of German supplier Edscha.

Mundt said that it's probable that the lack of competition would lead to higher prices. In 2009, the value of Europe's convertible roof business was about 600 million euros (about $733 million).

In a March interview with Automotive News Europe, Guenter Apfalter, president of Magna International Austrian unit Magna Steyr, was asked if carmakers were concerned about the potential lack of competition.

He said that the OEMs, which make convertible cars, are actually supportive of the deal. He added that the OEMs think that the industry needs a "strong company in the roof business with a strong financing backing." [via autonews]

Topics: magna, germany

If you liked the article, share on:

Pin It

Comments

Recommended

The German automaker Volkswagen is now racing against time to come up with electric vehicles that will be able to pass Europe and China's stringent emission standard. The car company...
by - March 22, 2017
In the last few years, the advent of compact sedans and crossovers has become quite overwhelming. Even two of the major manufacturers that “started it all” have to admit that...
by - March 22, 2017
By 2020, Audi will be throwing out not just one but three fully-electric vehicles. One of which will be pitted against the BMW i8. This new information was revealed by...
by - March 22, 2017
Tesla confirms that they will be discontinuing the fairly new Model S 60 and 60D sedans as soon as next month. Why, you ask? The company wants to make enough...
by - March 22, 2017
Have you ever wondered how much luxury car companies profit from every vehicle they sell? And which companies profit more? Well, in 2016, Porsche sold over 238,000 vehicles. That is...
by - March 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries