Magna Co-CEO Resigns to Join Russian Conglomerate

Magna International Inc. co-CEO Siegfried Wolf today resigns his post at the Canadian supplier to become chairman of Russian firm Basic Element and its machinery division OJSC Russian Machines, the parent company of GAZ Group.

Russian Machines holds industrial and engineering assets in such segments as automotive, road-construction equipment, aircraft, railway transport and military vehicles.

In addition to his position at Magna, Wolf since 2008 has served on the board of GAZ Group, helping to develop a relationship between the two companies.

In a statement, Wolf expresses confidence in the Russian construction and automotive markets, which slowly are recovering from the global economic recession.

The “markets offer strong growth prospects and a need for further modernization,” Wolf says. “I know Basic Element, It’s a world-class company which has the potential to meet these challenges.”

Magna Chairman Frank Stonach in a statement says Wolf’s departure could prove to be an opportunity for Magna.

“Magna stands to further strengthen its relationship with Basic Element and continue to grow in the recovering Russian automotive market, “Stonach says, “while Basic Element gains an experienced manager with full-vehicle-assembly expertise who can immediately assist its automotive division in pursuing its modernization and growth strategy.”

Magna International co-CEO Siegfried Wolf is confident the Russian automotive market will rebound.

After a dismal 2009, Russia’s automotive market is beginning to trend upward. In August, new-vehicle sales rose for the sixth month in a row, soaring 51% to 168,627 units.

The Association of European Businesses’ automobile manufacturers committee says the result left 8-month deliveries up 15% to 1,135,074, compared with year-ago.

Wolf’s position at Magna, which he will vacate Nov. 15, will not be filled, the supplier says, noting fellow co-CEO Donald Walker now will be the sole CEO.