A senior manager heads for Russia.
Magna International Co-CEO Siegfried Wolf is leaving the Canadian automotive supply giant in November to take a job with Russian metals tycoon Oleg Deripaska.
The move comes less than a year after a bid by Magna and a Russian partner to take control of General Motors’ struggling European Opel subsidiary collapsed.
Wolf, who is also head of Magna’s Austrian-based vehicle building unit, Magna-Steyr, will take an executive position with Deripaska’s Basic Element and its machinery division OJSC Russian Machines, the parent company of Russian automotive OEM, GAZ Group.
Donald Walker, who shared chief executive duties with Wolf, was confirmed as Magna’s single CEO, following Wolf’s resignation.
“When Oleg Deripaska recently approached us for permission for Basic Element to make an offer to Sigi, we made it clear that the decision should ultimately rest with Sigi,” Magna Chairman Frank Stronach said in a statement.
Deripaska is one of Russia’s most prominent industrial tycoons, with extensive holding in the mining and processing of key metals. He also has developed a keen interest in the motor vehicle industry and owns a stake in Magna.
Stronach also said Magna’s board appreciates the potential benefits that could arise from Wolf’s new role.
“Magna stands to further strengthen its relationship with Basic Element and continue to grow in the recovering Russian automotive market,” he said, “while Basic Element gains an experienced manager with extensive full vehicle assembly expertise who can immediately assist its automotive division in pursuing its modernization and growth strategy.”
Wolf, in turn, telegraphed the likely strong relationship with his former employer, suggesting he will “remain a friend and strong supporter of Magna.
“I also look forward to potential future opportunities to work together with Magna in connection with Magna’s ongoing expansion strategy in Russia and the important role that I am sure it will play in the development of the Russian automotive industry,” Wolf said.
Wolf’s departure is the latest in an ongoing melodrama at Magna, one of the world’s largest automotive suppliers. A recent bid to eliminate the company’s special stock giving founder Stronach an extra measure of control was rejected in a heated battle with dissident shareholders.