Porsche also bails on Magna over Boxster and Cayman production, company seeks damages of $600 million
Damn, Magna can’t catch a break these days. After being stood up, in lack of better words, by GM, which decided to keep Opel after heavy negotiations and almost signing a contract with the Canadian partsmaker and its partner, Sberbank, it seems that Porsche is bailing out of a deal it had with the company to produce, starting from 2012, the Boxster and Cayman models at its Graz plant in Austria.
It seems that the contract was signed last year, Porsche decided to shift the production of the Boxster and Cayman models closer to its native Germany, and awarded Magna with an eight-year contract, due to start in 2012. Now, as Volkswagen is in the process of acquiring Porsche, the new models will be shifted to an in-house plant, leaving Magna with nothing.
But the Canadian company isn’t going to receive this blow standing down, and, according to rumors, is planning to sue Porsche for €400 million (around $600 million) damages, as it already started upgrading its plant to facilitate the production of the new models.
While nothing is for certain yet, we will let you know about this new scandal in the automotive industry.
Post tags: Tags: magna, Porsche, porsche boxster, porsche cayman