Magna Int'l explores interest from Russia carmakers

VIENNA, June 21 (Reuters) - Magna International (MGa.TO: Quote, Profile, Research) is exploring interest from Russian carmakers seeking the car parts and assembly group's expertise, co-Chief Executive Siegfried Wolf said on Wednesday.

"We have had a couple of enquiries," Wolf told an Automotive News Europe industry conference, noting Russians wanted to have a successful domestic brand to compete against foreigners who are increasing their share of the market.

Wolf estimated that there will be 1.5 million units of capacity in Russia over the next few years and that Russian companies could use his firm's engineering and stamping ability to capture half of that. Foreign-owned rivals, which now have about 350,000 units of capacity annually, would have the rest.

He said the Canadian auto parts maker was taking a cautious approach to the Russian overtures and ruled out prospects for making acquisitions. Magna preferred partnerships to acquisitions in Asia where it planned to expand, he said.

Magna, which assembles cars for various partners, has 3.5 percent of this global market for outsourcing vehicle manufacturing and aims to boost this to 10 percent, Wolf said.

He declined to say whether Magna was in talks to make premium Lexus cars for Toyota Motor Corp (7203.T: Quote, Profile, Research) in Europe.

"We always talk to customers," he told reporters when asked about his comment that Magna would have space to make cars for Toyota at the Magna plant in Graz, Austria.

He said Magna received "positive signals" from General Motors (GM.N: Quote, Profile, Research) about continuing to manufacture Saab band convertibles under license even though GM has excess manufacturing capacity itself.