Porsche threatens to cancel Magna contract to build next-generation Boxster and Cayman

Porsche has threatened to pull its existing contract with Magna to build the next-generation Boxster and Cayman in Austria starting in 2013. The Stuttgart automaker said that it may instead move production to Karmann in Germany. The move comes as Porsche aims to guard its engineering and production cost secrets for its upcoming roadster and coupe.

Insiders said that the plans to build the Boxster and Cayman in Austria are being heavily reviewed following Magna’s bid to take control of General Motors Opel brand.

At the 2009 Frankfurt Motor Show, Volkswagen CEO Martin Winterkorn said that the German automaker, which is in the process of purchasing 49 percent of Porsche, may be forced to look for new engineering partners if Magna’s bid to buy Opel is successful.

BMW officials said that they are also studying whether “plans to build the Mini Crossover at Magna could be advantageous to Opel.”

– By: Kap Shah

Source: AutoWeek