Colorful heiress back in business
Belinda Stronach speaks at a news conference in Toronto, Canada. Norm Betts/Bloomberg News |
In a statement, the blonde bombshell who once challenged Canadian Prime Minister Stephen Harper for leadership of the Conservatives as a rookie glad-hander, said she would rejoin Magna International Inc as executive vice-chairman.
The company was started by her father, Frank Stronach, who is reportedly planning, along with Onex Corp, to make an all-Canadian offer for the troubled Detroit car company.
"After being encouraged by members of the corporate leadership at Magna to return, I have decided that the timing of my return to the business should not be delayed," Stronach said in a statement.
"My father is looking to the future, the company is facing important strategic decisions, and the Canadian and global auto sector and economy is in a period of great challenge."
In an interview with public broadcaster CBC, she added: "It's a significant time in the Canadian auto industry... and I want to be a part of that."
DaimlerChrysler AG recently put its American unit up for sale amid shareholder discontent over its continuing losses since the merger of Germany's Daimler and Chrysler in 1998.
The Globe and Mail said DaimlerChrysler wants at least $8 billion for Chrysler, but Magna and investment firm Onex would also likely have to assume pension and health liabilities topping $15 billion.
Making seats, trim, suspension and engine components for virtually every Chrysler vehicle manufactured in North America generates about $3.6 billion for Magna, or about 15 percent of its annual revenues.
In Austria, Magna also builds entire cars for DaimlerChrysler. Stronach was chief executive of Magna between 2001 and 2004.
Faded star
Three subsequent years in politics were enough to launch Stronach to the heights of an MP star, which faded. She was left in the opposition back benches.
Shares of the Magna fell 2 cents to $78.45 at 4:01 pm in New York Stock Exchange composite trading. They've fallen 2.6 percent this year.
"I will continue to represent the interests of the constituents I serve until such time as a federal election is called." Canadian Prime Minister Stephen Harper's minority government faces elections as early as this year. A telephone call for comment from Stronach wasn't immediately returned.
Dieter Zetsche, chief executive officer of Stuttgart, Germany-based DaimlerChrysler, told shareholders last week that he's in talks to sell Chrysler after it posted a $1.5 billion loss in 2006.
Stronach, 40, returns to Magna after leaving her position as CEO to run in 2004 for the leadership of the Conservative Party. She lost to Harper. Time magazine that year named her one of the world's 100 most influential people.
She dealt a blow to Harper in May 2005 when she switched to the Liberal Party, giving then Prime Minister Paul Martin the additional vote he needed to pass his budget a few days later and avoid an election. Martin named her minister of human resources and skills development.
Stronach's political career also was marked by front-page newspaper stories on her dating life, including a breakup with boyfriend and Conservative Party member Peter MacKay when she moved to the Liberals.
AFP-Bloomberg News
(China Daily 04/13/2007 page16)
