VW seeks to cut ties with Magna after Opel takeover
German car maker Volkswagen is seeking to end or sharply reduce its ties with car parts maker Magna after the Canadian group's takeover of VW rival Opel, according to a report to be published Monday.
VW purchasing chief Francisco Garcia Sanz will be meeting Magna boss Siegfried Wolf in the next few days, Der Spiegel says.
Volkswagen, which buys two billion euros (2.8 billion dollars) worth of parts from Magna every year, does not want its rival deducing from VW's orders what might feature in future models, it adds.
The threat to halt orders from Magna would also apply to luxury sports car maker Porsche, which now belongs to the Volkswagen group.
The development follows Chrysler's decision reported on Wednesday not to renew its contracts with Magna for the production of vehicles for the European market.
A spokesman for Fiat, which recently bought Chrysler, said that in future the cars would be built at the Fiat-owned Bertone plant in Italy.
The Opel takeover has raised concern among competitors who do not want to see a key supplier transformed into a direct rival.
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