Frank Stronach, the billionaire auto parts magnate who built Magna International from scratch, has been found guilty of sexual assault and indecent assault, marking a stunning fall from grace for the man who once declared, "Life has been incredibly good to me."
From Humble Beginnings to Industrial Empire
Stronach arrived in Canada from Austria over seven decades ago at the age of 21 with little money and rudimentary English. He went on to become a tycoon in a Hollywood movie mould, visually striking, fit and energetic, with piercing blue eyes and silver hair that became his trademark in the 1980s. He kept iron-fist control of his companies, installing directors at a whim, and showed disdain for shareholders who questioned his judgment.
In his 2012 memoir titled The Magna Man: My Road to Economic Freedom, Stronach wrote: "I built a company from scratch that is today recognized as the premier automotive supplier in the world … generating close to $30 billion in annual sales, with no debt and $1 billion cash sitting in the bank." He added, "The company produces parts for virtually every car and truck on the road today."
The Shocking Allegations and Trial
Canadians who watched Stronach’s incredible rise to billionaire tycoon status over decades were stunned two years ago when Peel Regional Police charged him with a series of sexual assault allegations spanning more than four decades. On Friday, a judge found him guilty of one count of sexual assault and one of indecent assault over historical claims involving two women. In both cases, he and his victim remained fully clothed. He was originally facing 12 charges involving seven women but was found not guilty on the other ten charges.
David Soberman, a professor of marketing at the University of Toronto’s Rotman School of Management, commented: "Any time somebody with that kind of influence who has been that successful in business and those stories come out, it is shocking." He doubts the outcome of the trial will have any effect on Magna, which bills itself as one of the world’s largest automotive suppliers. "He’s not really involved in the day-to-day operations of the business," Soberman said, though he noted Stronach was "absolutely" a party-of-one running Magna for many years. "Right now, it’s more of a side show where Magna is in the article, but not really affected by it."
Stronach's Political Dabbling and Legacy
Stronach always had a knack for drawing powerful people close to him. Former management included former federal cabinet minister Brian Tobin, and his boards of directors included former Ontario premiers Bill Davis and Mike Harris. Not surprising for a man with opinions as strong and vociferous as Stronach’s, he dabbled in politics. As a vocal opponent of the Canada–United States Free Trade Agreement, he resigned as CEO of Magna in 1988 — but kept control of the firm — to run as a Liberal candidate in the federal election. He ruffled feathers with his talk that kindled notions of a Messiah complex: "When I bring forth ideas, they are so well-balanced, so precise, they’re so well thought out that the public — once they get to know it — will say that’s what we would like to have, that’s the kind of government we want to see," he was quoted as saying.
Now 93, Stronach’s legacy is forever tarnished by the convictions, a far cry from the rags-to-riches story he once embodied.
