Porsche Cancels Boxster/Cayman Production Contract With Magna

Its been announced that Porsche is trying to cancel their Manga production contract for the Boxster and Cayman. The new Porsche contract was written up in 2008 and the cancelation seems to have occured because Porsche is being added to the Volkswagen portfolio. Volkswagen has purchased the remains of Karmann, the Boxster and Cayman are now expected be built at the coachbuilder’s factory in Osnabrueck, Germany.

Magna claims it has already invested a significant amount of money on development to prepare for production. As a result Magna is seeking €400 million in compensation from Porsche. There’s no word from Stuttgart on its plans to repay Magna, but with VW’s legal arm exercised and ready to go, the battle is sure to be drawn out over the coming months and years.