2009 Porsche Boxster S - Click above for high res image gallery

Shortly after the Boxster debuted in 1996, Porsche contracted with Valmet Automotive of Finland as a second production source for the sports car, and a few years later, employed the facili along with the Cayman coupe. In 2008 Porsche decided that it would shift that production contract from Valmet to Magna International and its assembly plant in Graz Austria. Today, with Porsche being subsumed into the Volkswagen Group, the sports car maker has decided to cancel the Magna deal. With Volkswagen now buying up the remains of Karmann, the Boxster and Cayman are now expected be built at the coachbuilder's factory in Osnabrueck, Germany.

Magna claims it has already invested a significant amount of money on development to prepare for production. As a result Magna is seeking €400 million in compensation from Porsche. There's no word from Stuttgart on its plans to repay Magna, but with VW's legal arm exercised and ready to go, the battle is sure to be drawn out over the coming months and years.


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[Source: Reuters]