Volkswagen is seeking to end or sharply reduce its ties with car parts maker Magna after the Canadian group’s takeover of rival Opel, according to a German magazine.
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Der Spiegel said VW purchasing chief Francisco Garcia Sanz would be meeting Magna co-CEO Siegfried Wolf in the next few days.
Volkswagen, which buys EUR2bn (US$2.8bn) worth of parts from Magna every year, does not want its rival working out from VW’s orders what might feature in future models, the report said.
The threat to halt orders from Magna would also apply to luxury sports car maker Porsche, now part of the VW group.
The development followed Chrysler’s decision last week not to renew contracts with Magna Steyr for assembly of vehicles for European and other export markets. While some production – such as the Chrysler minivans – is now back in the US, the automaker now plans to use its newly acquired Bertone facility in Turin, Italy, for local assembly in Europe.
The Opel takeover had raised concern among competitors who do not want to see a key supplier transformed into a direct rival.
“Until now, we have had a good cooperation with Magna,” BMW finance director Friedrich Eichiner said at the Frankfurt motor show last month.
“But the strategy has changed,” he added.”We must consider which technologies are going to fall into the hands of a competitor.”
