Magna To Produce SLS AMG

Magna International is a Canadian parts supplier for many car companies around the world. As you may know, the recent GM financial crisis prompted the sale of Opel. After a long and arduous bidding process Magna International emerged as the victor.

The fact that the company also gets contracts to produce vehicles for other manufacturers has many potential clients worried there is now a conflict of interest. Trade secrets could be compromised as they are being shared with a competing manufacturer, or so the thinking goes. It was a cause for concern at Magna that people would steer clear of critical services that it offers.

Apparently, Mercedes-Benz isn't concerned about any of that. Magna's Austrian Steyr subsidiary has received the contract to build the body of the SLS AMG. This is a big vote of confidence in Magna, and should have an effect on the perception of Magna by other companies.

Regarding the contact, Daimler's CEO Dieter Zetche had this to say:  "Magna has stated and confirmed again and again that they would have two totally separate organizations with Chinese walls. When you go to a bank, you have to rely on those Chinese walls as well."

For Magna, this is extremely good news. A plum new manufacturing contract for a high-end vehicle and a signal to the company's other contract partners that Mercedes-Benz isn't worried about anything.