Vw to withdraw business from Magna if Opel take over is completed

Article by Christian A., on August 26, 2010

In another case of a supplier transforming into a threat is Magna International's takeover of Opel with Russian partner Sberbank. Volkswagen said that it will withdraw business from Magna if the takeover pushes through.

Detlef Wittig, Volkswagen's head of sales and marketing, said that its business with Magna involves development know-how and so it cannot permit that this will get into the hands of a supplier that could use this in its own automobile company.

In fact, Volkswagen AG Chairman Ferdinand Piech has said he wouldn't want to see one of its major suppliers become a competitor.

In recent news, General Motors Co. agreed to sell to Magna and its partner, state-controlled Russian lender Sberbank, a 55% stake in Opel in a deal that is expected to be finalized by the end of November.

Magna, which will have operational control of Opel, claims that it will run its supplier and auto businesses separately with firewalls between the two. However, automakers continue to be worried that Opel would be able to access their technology.

BMW's head of production Frank-Peter Arndt had commented that it was a problem when a supplier became a competitor. He said that BMW would react when it sees a conflict of interest. BMW is Magna's second-biggest customer after GM.

Topics: vw, magna, opel

If you liked the article, share on:

Comments

Recommended

The new Jaguar E-Pace crossover will soon hold its official launch on July 13 and is expected to arrive at the showrooms by early next year. It couldn’t have come...
by - June 24, 2017
New and improved 2018 Subaru Legacy comes packed with a number of upgraded features from the get go - from the exterior to the interior. And the company has finally...
by - June 23, 2017
In an interview involving Lamborghini CEO Stefano Domenicali and Automotive News, the topic about the Urus was thoroughly discussed. This super SUV is scheduled to make its debut later this...
by - June 23, 2017
Porsche definitely adores variety. You’ll see what we mean if you browse through the official company's website that shows a plethora of various 911 models. And now, the German marque...
by - June 23, 2017
2018 Ford Expedition is on its way to the market, and will be arriving at dealerships this fall. The all-new SUV will come with a new design, new EcoBoost engine,...
by - June 23, 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