"The message I want to get across is we do not want to compete with any customer," Stronach stressed. "We want to be of service. We would invest monies with our customers," but notcompete with them.
Quoting people familiar with discussions concerning Chrysler's future, one report said earlier yesterday that Magna is among the "front-runners" to buy the company, the North American arm of DaimlerChrysler AG of Germany.
Other companies looking at Chrysler are U.S.-based Cerberus Capital Management and a team that includes Blackstone Group and Centerbridge Partners, according to Bloomberg News.
But Stronach, who is also Magna's founder and controlling shareholder, repeated that any investment would not put the company at odds with its other customers who compete with Chrysler.
"If something is sick, you want to get the patient to health again and then demonstrate `look, we don't want to compete,'" he said.
Magna, the world's third-largest auto parts maker with annual sales of about $24.1 billion (U.S.), has been trying to expand its parts design, engineering and production capabilities in North America to include vehicle assembly in recent years.
"We would put maybe half of the monies or maybe a third to develop (a model) and then drive along with the success," Stronach said.
"We've told our customers `look, lets work together. We could build high quality cars at low prices.'"
Magna already produces vehicles for several auto makers including Chrysler at its assembly plant in Austria. Stronach's remarks suggest Magna now sees an investment opportunity at Chrysler to make more cars and trucks for the auto giant, rather than take a run at buying it.
A purchase price of $4 billion to $5 billion for Chrysler would also saddle Magna with debt in an industry in which overcapacity is driving down prices and profits.
Magna experienced a brush with bankruptcy in the early 1990s and Stronach almost lost the company and control. Since then, Magna has posted some of the strongest balance sheets in the industry and remained vigilant in keeping debt down.
Buzz Hargrove, president of the Canadian Auto Workers union, said it is difficult to understand why any company would want to risk buying an auto maker in view of the vicious competition in the industry around the world.
Uncertainty about Chrysler's future increased last month when Dieter Zetsche, chair of German parent DaimlerChrysler AG, said it was examining all options for the North American division. His revelation came on the same day the Chrysler Group announced a restructuring plan after losing $1.5 billion (U.S.) last year.
Magna officials say the company is currently trying to gain an understanding of Chrysler's situation and won't comment on any subsequent action.
The outspoken Stronach was unusually tight-lipped about discussions and options involving Chrysler, Magna's biggest customer. The auto maker represents about 25 per cent of Magna's sales.
"It's very sensitive right now."
In view of Chrysler's importance to Magna, Stronach also said an ownership change could have serious consequences for his company, workers and communities.
Analysts say a new owner might be intent on downsizing the company to maximize profits over a short period of time.
"It's a concern," Stronach noted. "All those things go through our minds."
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