Canadian auto parts giant Magna International Inc. is the latest rumored acquiror for car maker Chrysler, according to Auto Blog. The Toronto-based company is the third-largest automotive supplier in the world with 2005 sales of $22.8 billion and a market cap of $10 billion. Before dismissing the rumor as absurd, consider a few details. Although known as an auto parts maker, Magna actually builds cars for auto makers in other parts of the world including a Chrysler plant in Austria. In addition, Magna reportedly was a bidder for Aston Martin. If the Aston Martin rumor is true, then landing a larger quarry may be equally if not more attractive. Of course, a Magna buyout of Chrysler could be bad news for the other North American auto parts makers because Magna may refuse to renew contracts with rivals, suggests Auto Blog. Consequently, a Magna-Chrysler deal could tip the remaining troubled auto parts makers into bankruptcy. Of course, Magna could be betting the house on Chrysler, so if it fails to turn the troubled auto maker around, it could join its peers in bankruptcy court.—Matthew Wurtzel
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