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.