Magna International

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Magna International Inc.
Type Public
Traded as NYSEMGA TSXMG
Industry Auto and Truck parts
Founded 1957
Headquarters Aurora, Ontario, Canada
Key people Frank Stronach, Honorary Chairman
Donald Walker, CEO
Vincent J. Galifi, Executive VP & CFO
Revenue Increase US$ 034.835 billion (2013)[1]
Operating income Increase US$ 01.9 billion (2013)[1]
Net income Increase US$ 001.561 billion (2013)[1]
Total assets Increase US$ 17.990billion (2013)[1]
Total equity Increase US$ 09.623 billion (2013)[1]
Employees 130,000
Website www.magna.com

Magna International Inc. (TSXMG)(NYSEMGA) is a global automotive supplier headquartered in Aurora, Ontario, Canada. In 2012 it was the largest automobile parts manufacturer in North America by sales of original equipment parts, and one of Canada's largest companies.[2] Its operating groups include Magna Steyr, Magna Powertrain, Magna Exteriors, Magna Interiors, Magna Seating, Magna Closures, Magna Mirrors, Magna Electronics and Cosma International.

Magna manufactures auto parts that are primarily supplied to General Motors, Ford Motor Company, and Chrysler LLC.[citation needed] In addition to the Big 3 U.S. automakers, Magna's major customers include Tesla Motors, Volkswagen, BMW and Toyota.[3] In Europe, Magna Steyr holds contracts for the assembly of the Peugeot RCZ and Mini Countryman.[4]

Magna has approximately 128,000 employees in 315 manufacturing operations and 82 product development, engineering and sales centres in 29 countries. [5]Magna operates under a corporate constitution[6] which calls for distribution of profits to employees and shareholders. The terms of this contract are "fair enterprise" according to Frank Stronach, company founder.[citation needed]

Capabilities and products[edit]

Magna’s capabilities include the design, engineering, testing and manufacture of exterior systems, interior systems, seating systems, closure systems, vision systems, powertrain systems, electronic systems, roof systems, body & chassis systems, hybrid & electric vehicle systems, and vehicle engineering & contract assembly.[7]

History[edit]

The company was founded in 1957 by Frank Stronach as "Multimatic" and "Multimatic Motorsports". This company merged with Magna Electronics in 1969, and the combined company became Magna International in 1973.

Magna acquired 80% of New Venture Gear, once a joint venture between General Motors and Chrysler, in September 2004, and combined it into Magna Powertrain. It assumed full ownership in 2007.

Magna purchased CTS Fahrzeug-Dachsysteme, a supplier of convertible roofs, from Porsche in November 2005.

The Sunday Telegraph in London reported January 2007 that Magna International was on a short list of bidders to purchase Aston Martin.[8] Their bid was unsuccessful; the company instead went to a British consortium led by Dave Richards of Prodrive for £479 million.[9]

According to a NPR broadcast on March 23, 2007, Magna showed interest in acquiring the Chrysler division of DaimlerChrysler. However on 14 May 2007, it was announced that Cerberus Capital Management had won the acquisition bid for $7.4 billion.

In April 2008, Magna's wholly owned subsidiary, Cosma International, announced that they were buying the Ogihara America Corp. stamping plant in Birmingham, Alabama, that makes parts for Mercedes-Benz and other automakers.[10]

Electric vehicles[edit]

In October 2008, Magna Electronics acquired BluWav Systems LLC, a Michigan-based company that focused on propulsion and energy management for electric vehicles and trains. Together with the electric- and hybrid-vehicle capabilities of other Magna groups, the company began to assemble all of its electric and hybrid propulsion activities into one entity. On August 31, 2010, Magna E-Cars Systems[11] was formed as a joint venture between Magna and its founder's enterprise.[12]

One of Magna E-Car Systems' early successes is supplying the powertrain on the upcoming Ford Focus Electric vehicle. This project started in 2008. A few months after a round of preliminary discussions with Ford Motor Company with regard to all-electric (BEV) vehicles, Magna made a surprise visit[13] to Ford in August 2008 to demonstrate a Ford Focus it had procured and converted to battery operation on its own time and expense.[14] The result was a contract to supply an electric drivetrain for the North American version of the 2011 all-electric Ford Focus Electric.[15] By August 2009, a team of Magna employees was working along with Ford engineers in Dearborn.[16] In October, industry publication Ward's Auto World reported that Magna has been approached by several other automakers worldwide to acquire or purchase the same technology, which Magna says is designed to be custom-configured for a variety of applications.[17] The risk behind the initiative is that only a few so called "compliance cars" will be sold to cope with Corporate Average Fuel Economy-regulations.[citation needed]

Political connections[edit]

The firm is also known for its political connections, such as having former Premiers of Ontario on its board, as well as connections with numerous other former politicians. Some politicians who have had notable positions with Magna include Mike Harris and Brian Tobin, retired Premiers of Ontario and Newfoundland & Labrador, respectively, and the latter also a once prominent federal minister of Fisheries and Oceans. In 1988, Frank Stronach ran as a candidate for parliament for the federal Liberal Party, but was defeated.

Magna International has also been noted for its connections to the Ontario Progressive Conservative Party and the Ontario Liberal Party. In 2003, the Progressive Conservatives under Ernie Eves presented the provincial budget at a Magna plant leading to accusations[by whom?] that the government was violating centuries of parliamentary tradition.[citation needed] It is believed that this decision had a negative impact on the Progressive Conservatives in the next provincial election.[citation needed]

Restatement[edit]

On May 18, 2000, the company restated its net income and earnings per share (previously $109 million and $1.22 respectively) due to an accounting policy change relating to design and engineering and pre-production start-up costs.[18] On May 2, 2001, the company restated diluted earnings per share (previously $1.55) due to an accounting policy change related to the adoption of the treasury stock method.[19]

See also[edit]

References[edit]

  1. ^ a b c d e "2012 Annual Report to Shareholders". Magna International, inc. 
  2. ^ "Automotive News Top 150 Suppliers 2010" (PDF). Retrieved 2012-06-06. 
  3. ^ "Cosma International Body & Chassis Systems Customers". Magna Cosma International Website. Retrieved 2 June 2014. 
  4. ^ http://www.magna.com/capabilities/vehicle-engineering-contract-manufacturing/product-services/contract-manufacturing/complete-vehicle-production Retrieved 2013-07-23.
  5. ^ http://www.magna.com/media/press-releases-news/news-page/2014/01/15/press-release---magna-announces-outlook
  6. ^ Magna Constitution from Magna website
  7. ^ Magna Int. 2011 annual report
  8. ^ http://www.canada.com/nationalpost/financialpost/story.html?id=496ec29d-6cc5-4775-a3a7-dcde6508667c
  9. ^ "Article". BBC News. 2007-06-12. Retrieved 2011-03-02. 
  10. ^ "Ogihara America sells local auto supply plant - Birmingham Business Journal". Bizjournals.com. 2008-04-22. Retrieved 2011-03-02. 
  11. ^ "News - Hybrid & Electric Vehicles/Systems | Magna International Inc". Magna.com. 2010-03-01. Retrieved 2011-03-02. 
  12. ^ "Magna E-Car Systems at a Glance - Hybrid & Electric Vehicles/Systems | Magna International Inc". Magna.com. 2010-08-31. Retrieved 2011-03-02. 
  13. ^ Colin Mathews (2009-02-02). "Ford And Magna International To Partner On Electric Vehicle - The Car Connection". Blogs.thecarconnection.com. Retrieved 2009-10-25. 
  14. ^ "Ford's electric car project charges ahead | detnews.com | The Detroit News". detnews.com. Retrieved 2009-10-25. 
  15. ^ Valdes, Peter (2009-03-20). "Ford turns to a supplier to build an electric car - Mar. 20, 2009". Money.cnn.com. Retrieved 2009-10-25. 
  16. ^ Pope, Byron (2009-08-06). "Ford Challenged by Focus BEV Marketing Strategy". Wardsauto.com. Retrieved 2009-10-25. 
  17. ^ Zoia, David E. (2009-10-21). "Magna: More EV Programs to Come". Wardsauto.com. Retrieved 2009-10-25. 
  18. ^ "Magna announces record first quarter results". 
  19. ^ "Magna announces first quarter results". 

External links[edit]