Magna says open to "win-win" Fiat collaboration

By John McCrank

HAMILTON, Ontario (Reuters) - Magna International Inc (MGa.TO) would be open to collaborating with Fiat SpA (FIA.MI) or other European automakers, if it's a "win-win" scenario, the Canadian company's co-chief executive told Reuters on Thursday.

Don Walker would not comment on Magna's current battle with Fiat to buy General Motors Corp's GM.N Opel unit, saying he was not up to date on all the details of the negotiations. But he said he would not rule out some sort of alliance down the road.

"If you look at all the car companies, whether they're willing to work on sharing engine technology, transmission technology, sharing a platform -- I think there'll be more and more sharing of platforms -- and they'll do more of the marketing. So, never say never," Walker said when asked if a Magna-Fiat collaboration was a possibility.

"If there's a win-win, then there's always room for collaboration," he said on the sidelines of a conference in Hamilton, Ontario.

Walker added that while Magna was not in talks to buy GM's Saturn division, it would consider working with the eventual buyer if approached with a good opportunity.

He also said there would be more fallout from the downturn in the industry, especially among North American parts suppliers, as GM and Chrysler temporarily shutter plants and struggle to reorganize.

"Parts suppliers are still collecting their receivables for parts that were made a month and a half ago, but it's going to stop. And when they're asked to start up production again and the bank lines aren't there, they have to pay employees, they've got to buy materials and ship, and not get paid for 45 days. I think a lot of them won't be able to make it," he said.

"So, I would expect we are going to see a rash of restructuring bankruptcies coming up in the next month and a half."