Canadian government is putting pressure on Magna to end partnership with Avtotor

Canadian government is putting pressure on Magna to end partnership with Avtotor

RusAutoNews.Com- According to Izvestiya newspaper, the Canadian government has asked Magna to give up on the project, concerning the establishment of a new automobile cluster with Russian Avtotor in Kaliningrad. However, the company officials have turned down this request, on the grounds that great financial losses may occur, as a result of such a decision. The Chairman of Avtotor Holding: Valeri Draganov is the source of Izvestiya on this report.

Reportedly, Avtotor executives have informed the Prime Minister: Dmitri Medvedev about the situation, who in turn instructed his deputies to seek out countermeasures.

As one may remember, Magna and Avtotor had come to an agreement to establish an automobile cluster in Kaliningrad Region, to be formed of 16 supply industry facilities, in addition to five car factories, in 2012. The total amount to be invested in the project has been proposed as 150 million rubles.