Fiat CEO Sergio Marchionne announced that Chrysler drops the Magna contract and that the brand will continue to produce the models that were manufactured by Magna in a newly acquired factory in Italy. The loss of the Chrysler contract will be another blow to Magna as there are rumors that Volkswagen is also planning to drop its contract.
According to various sources in the industry the Austrians from Magna have already built a considerable number of vehicles for Chrysler.
Although Magna will no longer build Chrysler cars, it will continue to deliver parts to the American company. Fiat wants to establish itself as a strong competitor to General Motors and Opel and this could be a move towards this direction.
