• Nov 27, 2009
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.

[Source: Reuters]

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    • 1 Second Ago
      • 5 Years Ago
      damn....gotta make money somehow...
      • 5 Years Ago
      Undoubtedly Magna will be entitled to provable damages.
      • 5 Years Ago
      You guys both make sense. Thanks for the info. I guess in today's slash and burn climate it's easy to jump to conclusions.
      • 5 Years Ago
      Porsche/ VW, you are douches...
        • 5 Years Ago
        This situation that Magna is being put through has little to do with contract law and more about outsourcing of a failed supply/demand production cycle. With some lazy analytic's, you can ponder many instances in which Porsche is committed to VW, not only to save the company, or its resources, but the proprietary information that has made Porsche as exclusive it was once then and now. From my recollection, I always felt that once a company has several different products under the same umbrella, problems ensue with its upkeep. In addition, instead of focusing more on the namesake and staunch lines of the 911 and maybe its SUV brand, they did too much in too little time. It was nothing more than loan money not being repayable at any given moment. Banks have been too generous by name only, and Porsche is no exception. Long live the days that a company or an individual can call up and open a line of credit on reputation alone. And in this obscene version of the economy, I wouldn't hesitate to forecast that more divestitures will occur and spoiling the aura of such highly regarded brands.
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