The Godfather of Auto Parts: Frank Stronach’s Lingering Influence on Magna International

Stronach is renowned as a top-notch thoroughbred owner and breeder. Not the

“Hey Hilda, Wanna Breed??“

kind of breeder, though!

Magna International claims that Frank Stronach has had no affiliation with the company since he relinquished control in 2010. However, Stronach received $52 million in consulting fees and bonuses in 2013, which raised eyebrows given his official exit. This payout reflects his ongoing influence, akin to a “Godfather” scenario where the leader officially steps down but continues to pull the strings behind the scenes.

In 2010, Magna paid Stronach a massive $870 million to buy out his control, a deal that faced significant backlash from shareholders and legal challenges from pension funds. Despite the controversy, this move proved financially beneficial. Since Stronach’s departure, Magna’s market capitalization has soared from under $9 billion to $25 billion, and its share price has tripled. This growth is attributed to Magna’s renewed focus on its core auto parts business and shareholder-friendly initiatives such as dividend increases and share buybacks [❞] [❞].

Stronach’s continued receipt of consulting fees until 2014, despite his official exit, highlighted the complexity of his relationship with Magna. His extensive involvement in thoroughbred racing and breeding further underscores his multifaceted career. Stronach’s horses have won prestigious races like the Queen’s Plate and Belmont Stakes, and his breeding operations have earned multiple Eclipse Awards [❞].

Politically, Stronach ventured into Austrian politics, founding Team Stronach in 2012. His political ambitions included advocating for economic reforms and criticizing the Euro, but his party dissolved by 2017. His political involvement never significantly impacted Canadian liberal politics, despite initial concerns [❞] [❞].

Frank Stronach, the founder of Magna International, was arrested on June 7, 2024, by Peel Regional Police in connection with multiple sexual assault charges. The 91-year-old businessman faces five charges, including rape, indecent assault on a female, two counts of sexual assault, and forcible confinement. The allegations span several decades, from the 1980s up to 2023. Stronach has been released with conditions and is expected to appear in court in Brampton, Ontario, at a later date [❞] [❞].

Peel Regional Police have stated that there is more than one accuser, but they have not disclosed the exact number of victims involved. The police are urging anyone with additional information or who may have been a victim to come forward [❞] [❞].

This development is a significant turn in Stronach’s long and varied career, which includes notable achievements in both business and politics. Stronach’s contributions to the auto industry through Magna International and his political ventures, particularly in Austria, have kept him in the public eye for decades [❞].

For more detailed information, you can refer to the full articles on Maclean’s and Wikipedia.

Canadian businessman Frank Stronach faces charges in sexual assault investigation

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