Magna has signed an agreement with Russia’s economy ministry to build a plant in Russia.
According to the Detroit News, the plant would help the Canadian supplier profit from surging demand in the country but Magna refused to confirm the report. The significant development had already been reported widely in North American and foreign media.
Those reports suggested that Magna is planning to build a $US500m car plant for Chrysler in Russia.
There could also be a role for GAZ in a new Chrysler plant. Magna is partly owned by Russian Machines, a company that owns GAZ. Magna is expected to help GAZ restore its vehicle manufacturing business in Russia.
A Magna team is already helping GAZ build a new sedan based on the previous generation Chrysler Sebring, after the Russians bought a US assembly line from the North American automaker and brought it to their plant in Nizhny Novgorod. The new model, called the Siber, is expected to gradually replace the outdated Volga.
There are also repeated reports that Magna could buy into Russia’s largest manufacturer, AvtoVAZ. Magna is helping the Lada car maker design a new C segment model.