Magna to Buy Porsche Roof Unit for $200M

[kang]

BERLIN - German luxury automaker Porsche AG will sell its roof-system subsidiary CTS to Magna International Inc. of Canada for about 170 million euros ($200 million), the companies said Thursday.




Magna will pay Porsche in cash for CTS Fahrzeug-Dachsysteme GmbH, which they described as one of the world's leading manufacturers of roof systems for the automotive industry.

Magna Co-Chief Executive Siegfried Wolf said the Aurora, Ontario-based company believed it could broaden CTS' customer base and expand geographically.

Porsche CEO Wendelin Wiedeking said the move would allow Porsche to focus on developing, producing and selling its vehicles. He said Porsche would remain a customer.

CTS produces softtops, hardtops and retractable hardtops for customers that also include DaimlerChrysler AG, Fiat SPA's Ferrari, PSA Peugeot Citroen SA and General Motors Corp.

It reported 2004 sales of about 400 million euros ($470 million). It operates at six locations in Europe and two in North America, with approximately 1,100 employees.

Shares of Magna rose 14 cents to close at $69.04 Thursday on the New York Stock Exchange.

[M.D. Holloway]

Cool - Magna is a good customer of ours. Who knows, maybe someday it may come in handy?

[masraum]

Porsche does a ton of stuff.