Two strikes for Magna this week, what next?
Damon reported the other day that BMW has decided to shift production of the next generation X3 to their Spartanburg, SC plant. While that's good news for the employees in Spartanburg, it's the second big loss for Magna International this week. After losing out to Cerberus in the bidding for Chrysler, they are on the short end of the X3 production deal.
Magna-Steyr's plant in Graz, Austria has been assembling the X3 for BMW since 2003 in a deal that will end when the X3 starts coming off the South Carolina line. The X3 accounted for forty-five percent of the Graz plant's output and Magna is looking for a new customer to take up that capacity starting sometime in 2010.
[Source: TheAutoChannel]
Reader Comments (Page 1 of 1)
DJ 9:09AM (5/17/2007)
I wouldn't worry about Magna ... All of Chrysler was too much for Magna and Cerberus is definately not in it for the long haul. Magna (and any other potential bidders) is better off letting Cerberus clean house over the next couple years then pick up the key pieces it really wants. Some analysts think Cerberus 'bet the farm' with Chrysler, but with word now that they are joining the hunt for BCE, Chrysler is peanuts.
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felipe 11:14AM (5/17/2007)
'Autoshows' - needs to be banned.
so tired of that crap.
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Ben 11:56AM (5/17/2007)
The bigga boss of Magna recently bragged that even the sheiks do not have enough money to buy him out .... Mmmmmmmm ..... maybe he might be changing his mind the way his luck is going. Doesn't pay to get to cocky.
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Barney 12:50AM (5/18/2007)
It didn't cost Magna anything, to not spend money on Chrysler. The loss of this deal however, will be felt. Perhaps the new Russian investor will use Magna in the production of his own car manufacture. It isn't like BMW would switch overnight and a deal would have been made with Magna, prior to the separation. Magna would have been aware if not a year prior, at least several months.
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ebm 2:12PM (5/18/2007)
Magna should still build the X3's.
They also built the SAAB convertible and G-Wagon for MB.
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