Oleg Deripaska, the Russian oligarch, has bought a $1.54 billion (£778 million) stake in car-parts maker Magna ahead of the Canadian company’s expected bid for Chrysler.

The move by Mr Deripaska’s Basic Element investment vehicle opens the way for a tie-up between Russia and the iconic American carmaker.

Magna is regarded as a front-runner in the auction to buy Chrysler, the troubled Detroit manufacturer. DaimlerChrysler is selling the North American division after a string of losses, and is likely to seek about $5 billion (£2.5 billion) for the company.

Other bidders include the private equity firms Blackstone and Centerbridge Capital Partners and another consortium led by Cerberus Capital Management.

Last month Kirk Kerkorian, the billionaire investor, had a $4.5 billion (£2.3 billion) offer for Chrysler rejected. A decision on the winning bid is not expected for several more weeks.

Mr Deripaska already has significant automotive assets in Russia including GAZ, which makes lorries, minibuses and buses. It also makes Volga passenger cars.

Last year Basic Element bought LDV, the British maker of postal vans and minibuses. The deal gave GAZ access to new technology and design capabilities, which the company hoped to apply to its domestic truck division.

GAZ is also looking to begin production of LDV vehicles in Russia – once they have been strengthened to survive Russian roads.

Meanwhile, LDV in the UK is able to source cheaper components from Russia.

Analysts believe that if Mr Deripaska becomes one of the controlling shareholders in Chrysler a similar strategy may be followed. This could see quintessentially American cars such as the PT Cruiser, Jeep and Dodge Charger being built and sold to Russians.

GAZ already has a deal to produce the GR41, which is based on Chrysler’s Sebring saloon. The GR41 goes into production next February.

Magna and Basic Element said yesterday that the stake would enable the Canadian car-parts maker to expand into Russia but it is widely believed that Chrysler is the real reason for Mr Deripaska’s interest.

A spokesman for Magna said: “The component industry in Russia is highly monopolised as a legacy of the Soviet era and there is an opportunity to supply high-quality components to the manufacturers now setting up in Russia.”

Mr Deripaska built his estimated $14 billion (£7.1 billion) fortune in the aluminium industry and he is the largest shareholder in Rusal, the largest producer of the metal in the world.

Magna’s current majority shareholder, the Stronach Trust, will change its complex ownership structure to give Stronach and Basic Element’s Russian Machines subsidiary equal voting rights. Both Russian Machines and Stronach will appoint six directors to its 14-strong board. The 20 million shares bought by Basic Element yesterday equate to an 18 to 20 per cent stake in Magna.

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