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Posts Tagged ‘Frank Stronach’

Belinda Stronach Bails Out Of Magna

Once seemed destined to run family firm.

by on Dec.22, 2010

Seemingly destined to run the family business, Belinda Stronach has decided to leave Magna.

One of the most powerful women in the Canadian auto industry has tendered her resignation leaving observers guessing whatcaused Belinda Stronach to leave Magna International – and where she might show up next.

The daughter of Magna founder Frank Stronach, she will resign from her role as Executive Vice-Chair and member of the Board of Directors, effective December 31, 2010.  Her move follows a settlement between the company and its founder, earlier this year, that saw Frank Stronach relinquish his control over most of the company he founded in a machine shop shortly after emigrating from Austria after the Second World War.

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Magna Founder Stronach Surrendering Control

Changes drive up supplier’s stock, ratings.

by on May.07, 2010

Magna founder Frank Stronach is ready to trim back his ties to the Canadian mega-supplier.

Magna International Inc. one of the world’s largest automotive suppliers, has disclosed that founder Frank Stronach is volunteering to surrender his control over the company, one of several moves generating a strongly positive response from both shareholders and industry analysts.

The Canadian automotive supplier said it has entered into an agreement with the Stronach Trust under which holders of Magna’s Class A subordinate voting shares would be given the opportunity to decide whether to eliminate the dual class of share through which Magna’s founder, Frank Stronach, and his family have controlled Magna since the late 1970s.

The proposed agreement would also set a termination date and declining fee schedule for the consulting, business development and business services contracts Magna has in place with Austrian immigrant and company founder Stronach, Magna said.

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However, the transaction would establish a joint venture with the Stronach group to jointly continue to pursue opportunities in the vehicle electrification business, which Magna has recently expanded.

“We believe the proposed transaction, if approved by shareholders, has the potential to unlock significant share value for Magna shareholders and establish a strong foundation for the company’s continued and long-term success”, said Don Walker and Siegfried Wolf, Co-Chief Executive Officers of Magna in a joint statement.


Magna’s Opel Status Creates Problems for Rivals

VW squawks. Ford talks.

by on Sep.11, 2009

“When deals get done these sorts of things happen."

“When deals get done these sorts of things happen," Bill Ford told reporters.

While executives from Volkswagen AG have denounced the deal that proposes turning over Opel/Vauxhall to Magna International Inc. and its Russian banking partner, Ford Chairman William Clay Ford Jr. said that he and his company could live with the deal.

Meanwhile, VW executives have suggested that they may well have re-evaluate using Magna as a supplier if its bid for Opel/Vauxhall succeeds, which seems increasingly likely. VW’s concerns aren’t surprising. The deal, financed by the German government to save jobs, could elevate Opel’s game and turn it into a stronger, more serious competitor for VW in Central and Eastern Europe.

“The German on German rhetorical violence has really been something to see. It’s really escalated,” noted one observer familiar with the Europe automotive market.

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The acquisition of Opel/Vauxhall will make Magna a direct competitor of Ford Motor, particularly in Europe and Russia, as well as a supplier to Ford. However, William Clay Ford Jr., said Magna’s acquisition from General Motors Company of a controlling interest of the European carmaker Opel/Vauxhall would not stop Ford from doing business with the big Canadian company.