Why Frank Stronach set Magna free

Auto parts giant Magna International surprised the world last weekby unveiling a proposal that would see chairman Frank Stronach lose control of the company he founded in the 1970s.

Under the plan, Stronach would convert his 726,829 B shares into common stock in the company. Every B share is worth 100 A shares, giving the Stronach family control of two thirds of Magna's votes despite owning less than 10 per cent of the equity.

"While I am content to maintain the status quo, I understand the potential benefits of[this] proposal," he said at the time. "We have to change, even within our company. This is the reason I worked with management and the board to come up with strategy to keep us competitive."

Stronach sat down with the CBC's Amanda Lang recently to discuss the plan, why he's now ready to relinquish control,his outlook for the auto industry overall, and whether he has any regrets about his failed bid for European automaker Opel earlier this year.

Click on the video player above to watch their conversation.