CANADIAN AUTO supplier Magna International said it plans to hold talks to appease Volkswagen, which has threatened to pull business from Magna if it goes through with an investment in Opel.
Magna co-chief executive Donald Walker also told a media briefing in Tokyo that he was unaware of any talks between it and China’s Geely Group over a partnership on Opel, reported by several media outlets last week.
Earlier this month, General Motors (GM) agreed to sell control of Opel to a group led by Magna. Under the deal, Magna and Russian partner Sberbank will each take a 27.5 per cent stake, while GM will retain 35 per cent.
Magna has started talks with customers to assure them it will keep its supplier and automotive operations separate, preventing the technology of its carmarking customers being used by rivals.
“Most of the customers I have talked to want to know how we have a separation to protect technology, but they have told me they are comfortable with it,” Walker said.
“Specifically, Volkswagen has said it is concerned so we need to finalise the internal procedures and have more discussions.”
Detlef Wittig, head of Volkswagen’s sales and marketing, recently warned that the company would pull business from Magna, in which its development know-how is involved.
Volkswagen chief executive Martin Winterkorn has also raised concerns about the deal.
Analysts have said Magna’s push into the auto business risks its $23 billion (€15.5 billion) business with established customers. Magna’s major customers include GM, Ford Motor Co, Chrysler, Daimler AG and BMW.