Magna International requests damages from Porsche AG

Canadian company Magna International is requesting at least 400 million euros in compensation from Porsche AG for their cancellation of a contract in which the former would produce the latter’s Cayman and Boxster model sports cars in its Austrian factory.

Porsche, which is currently in the process of merging with Volkswagen Group AG, seeks to cancel the contract, but Magna has already done 400 million euros worth of development in their factory towards the project.

The original contract called for Magna to build the two models for eight years, starting in 2012.

-By Stephen Calogera

-Source: Reuters