Nissan drops Magna International

The carmaker Nissan has waived entrust the Canadian auto parts company Magna International (TSX: MG) assembly of its Infiniti luxury cars in Austria.

A Memorandum of Understanding announced in May by the two companies included the construction of vehicles has an Austrian Magna Steyr plant, based on a contract manufacturing.

Magna, whose head office is located in Aurora, Ontario, however, confirmed Friday that Nissan had now joined the compact car in one of its own factories.

This announcement is a setback for Magna, which wants to increase its activities in the field of assembling vehicles, activities that represent only a small fraction of its total revenues.

Magna had released the projected agreement with Nissan unveil at the financial results for its first quarter, 10 May The Ontario company was then referred to as an "important milestone to further diversify the portfolio of clients Magna Steyr."

Shares of Magna International have completed the session on Friday was $ 44.04 at the Toronto Stock Exchange, down 36 cents compared to their previous closing price.