Magna International

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Magna International Inc.
TypePublic
NYSEMGA
TSXMG
IndustryManufacturing
Founded1957; 64 years ago (1957)
FounderFrank Stronach
Headquarters,
Area served
Worldwide
Key people
Swamy Kotagiri, CEO
Tommy J. Skudutis, Executive VP & COO
Vincent J. Galifi, Executive VP & CF
James J. Tobin, Executive Vice-President and President, Magna Asia
Eric J. Wilds,Executive VP and Chief Sales & Marketing Officer
Riccardo C. Trecroce,Executive VP and CLO
Aaron D. McCarthy,Executive VP and CHRO
Francis C. Seguin,Executive VP Corporate Projects and Strategy Development
ProductsAutomotive
RevenueUS$ 40.82 billion (2018)[1]
US$ 2.83 billion (2018)[1]
US$ 2.29 billion (2018)[1]
Total assetsUS$ 25.94 billion (2018)[1]
Total equityUS$ 11.83 billion (2018)[1]
Number of employees
169,000 (2019)[2]
Websitewww.magna.com

Magna International Inc. is a Canadian mobility technology company for automakers. Magna is currently investing heavily in AI, and Level 5 Automation. It is one of the largest companies in Canada and was recognized on the 2019 Forbes Global 2000.[2] The company is the largest automobile parts manufacturer in North America by sales of original equipment parts, it has ranked consistently in the Fortune Global 500 list for 20 years in a row since 2001.[3][4] It produces automotive systems, assemblies, modules, and components,[5] which are supplied to General Motors, Ford Motor Company and FCA,[6] as well as BMW, Mercedes, Volkswagen and Tesla Motors, among others.[7][8]

The company is headquartered in Aurora, Ontario, and its chief executive officer is Swamy Kotagiri. It has 169,000 employees in 338 manufacturing operations and 89 product development, engineering and sales centres in 28 countries.[9] Magna is governed under a corporate constitution which calls for distribution of profits to employees and shareholders. The terms of this contract are a "fair enterprise system" according to company founder Frank Stronach.[10]

History[edit]

In 1957, Frank Stronach founded Multimatic Investments Ltd in a tool-and-die rented garage out of Toronto.[10] Its first automotive industry contract for metal sun visor brackets was with General Motors in 1959.[11]

By the late 1960s, the company was operating in eight plants. Stronach took Multimatic Investments public in 1969 through a merger with Magna Electronics Corporation, an aerospace, defense and industrial components company, and became known as Magna International in 1973.[10]

The company developed an employee equity participation and profit-sharing program in 1974. By 1981, Magna had sold its aerospace and defense operations to focus on the automotive industry. It began decentralizing major systems into independent, publicly-traded companies during the 1990s, while expanding into Asia.[12]

Magna began designing automotive rearview cameras for Hummers in 2005 on its production line in Michigan, which were not a federal requirement at the time. It was one of the first to develop rearview cameras for automakers, and had a 350,000 unit contract by 2007. The company has produced more than 46 million components and opened a $66.5 million plant to produce cameras and driver-assistance components.[13][14]

In February 2015, Samsung SDI agreed to purchase the battery pack business from Magna Steyr, an Austrian operating unit of Magna International, for $120 million.[15] Magna International partnered with Argus Cyber Security after joining in a 2015 Series B funding round to access the company's security technology.[16] The company sold its interiors business, which includes door and instrument panels, overhead systems and cargo management parts, to Grupo Antolin in August 2015. The sale to Grupo Antolin included 36 plants and 12,000 employees in Europe, North America and Asia, about 10 percent of the Magna's global workforce at the time. The operations generated sales of $2.4 billion in 2014.[17]

In March 2018, Magna announced they will work together with the ride-share company Lyft to supply high-tech kits that turn vehicles into self-driving cars. The company invested $200 million into the project and both parties will jointly own the intellectual property developed. It was also noted that Magna will be Lyft's exclusive supplier of self-driving kits.[18] Magna announced a partnership with BAIC Group in June 2018 to develop "next-generation" smart electric vehicles for Chinese consumers.[12] In October 2020, it was announced that Walker would retire as CEO at the end of 2020, with Swamy Kotagiri replacing him January 2021.[19] As of January 4, 2021 Swamy Kotagiri is now the CEO of Magna International.[20]

Corporate affairs[edit]

Magna International is headquartered in Aurora, Ontario, and has 338 manufacturing operations and 89 product development, engineering and sales centres in 28 countries. Its United States operations are headed out of Troy, Michigan with its European head office in Vienna, Austria.[21] Donald Walker is its chief executive officer and has been working with Magna since 1987.[22]

Magna is governed under a corporate constitution, and requires consensus from management, shareholders and employees to make any changes. The company shares 10 percent of pretax profits with its employees.[10] As of 2019, the company has 169,000 employees.[9]

Acquisitions[edit]

In 2002, Magna International announced that it had reached an agreement with DaimlerChrysler to acquire its Austrian-based Eurostar Automobilwerk operation.[23]

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, closing the operation in August 2012.[24]

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

In July 2015, Magna bought the German company Getrag, which was one of the largest suppliers of automotive transmissions worldwide for $1.9 billion. The acquisition worked to increase growth potential in the Chinese market.[25][26]

In 2018, the company acquired Haptronik GmbH, a German motion control software developer,[27] OLSA S.p.A., an Italian automotive lighting manufacturer,[28] and Viza Geca SL, a Spanish automotive seating company.[29] It partnered with Innoviz Technologies to produce solid-state lidar for autonomous vehicles for BMW Group.[30]

Technology[edit]

During its history, Magna International has worked with automakers to advance vehicle safety and technology such as smart mobility seating systems including stow-into-floor minivan seats, exterior systems including reaction injection moulding (RIM) bumpers, advanced driver assistance systems (ADAS), blind-spot detection and lane departure warning systems.[31] The company is the largest automobile parts supplier in North America and the third largest worldwide.[32]

It uses mobility technology to develop customized computing for fully automated driving systems.[32] In 2018, it introduced an Icon radar system to help automakers reach Level 5 autonomy as well as automatic emergency braking systems.[33] Magna has partnered with BMW on electrification to produce electric cars on a contract basis.[34] The company is also known for using new materials for "lightweighting" vehicles.[35] Goldman Sachs has reported that automated features developed by suppliers such as Magna will produce a 42 percent compound annual growth rate in global revenue over the next decade.[31]

Awards and recognition[edit]

Magna has also been recognized with several Automotive News PACE Awards for its innovations. Magna technologies that received PACE Awards in recent years include its BlindZone outside mirror (2009), Infinity rearview mirror (2012), laser-welded, hot-stamped door ring (2014, in partnership with Honda and ArcelorMittal) and PureView seamless sliding window (2015).

The company supplied the complete electric drivetrain on the Ford Focus Electric, which was awarded the 2011 Green Car Vision Award at the 2011 Washington Auto Show.[36]

In 2015, Magna's SmartLatch, an industry-first, 100 percent electronic door latching system, was named a finalist for the 2016 Automotive News PACE Awards.[37]

Bloomberg has called Magna International the "world's largest contract manufacturer of vehicles".[38]

References[edit]

  1. ^ a b c d e "Magna International Inc. (MGA)". Yahoo.com. Yahoo Finance.
  2. ^ a b "#427 Magna International". Forbes.com. Forbes.
  3. ^ "Automotive News Top 150 Suppliers 2014" (PDF). Diamts.com. Archived from the original (PDF) on April 26, 2012. Retrieved June 6, 2012.
  4. ^ https://fortune.com/company/magna-international/global500/. Missing or empty |title= (help)
  5. ^ Magna International to open local plant at Rockmill Industrial Park
  6. ^ "Samsung Acquires Magna International's EV Battery-pack". GuruFocus.com. Guru Focus.
  7. ^ "Magna International: A Short SWOT Analysis". ValueLine.com. Value Line.
  8. ^ "Tesla could escape 'production hell' for its Model 3 — but it would require a huge leap". BusinessInsider.com. Business Insider.
  9. ^ a b "Magna Continues to Expand in Morocco With New Mirrors Facility". GlobeNewsWire.com. GlobalNewswire.
  10. ^ a b c d "All's Fair (And All's Well) At Magna". AutoNews.com. Automotive News.
  11. ^ Thomas H. Klier; James M. Rubenstein (2008). Who Really Made Your Car?: Restructuring and Geographic Change in the Auto Industry.
  12. ^ a b Magna announces partnership to build electric vehicles in China
  13. ^ At Magna, the future focuses on cameras
  14. ^ Magna opens $50 million Michigan factory geared toward cameras
  15. ^ Samsung SDI to Acquire Magna International’s Battery Pack Business
  16. ^ How Magna International Inc is looking to startups for the next big thing in the auto industry
  17. ^ Irwin, John (August 31, 2015). "Grupo Antolin completes purchase of Magna interiors unit". Retrieved February 24, 2018.
  18. ^ "Magna to supply Lyft with kits to make self-driving autos". Reuters. March 15, 2018. Retrieved March 15, 2018.
  19. ^ "Magna CEO Don Walker to retire at end of 2020, Seetarama Kotagiri named as next CEO". CTVNews. October 20, 2020. Retrieved January 7, 2021.
  20. ^ Inc, Magna International (January 4, 2021). "New Year Brings New CEO for Magna". GlobeNewswire News Room. Retrieved January 7, 2021.
  21. ^ Magna International moving headquarters to King City, Ont
  22. ^ "Canada's outstanding CEO of the year: Magna's Donald Walker leads auto parts maker to the top". Financial Post.
  23. ^ Magna International Unit to Buy Daimler's Eurostar Operations
  24. ^ New Process Gear stops production this week after 124 years
  25. ^ Rocha, Euan (July 16, 2015). "Canadian auto parts maker Magna to buy Germany's Getrag for $1.9 billion". Reuters. Retrieved April 8, 2016.
  26. ^ Magna International to Buy Getrag of Germany for $1.9 Billion
  27. ^ Magna signs deal to acquire motion control specialist Haptronik
  28. ^ Magna International to buy lighting products maker Olsa for $267 million
  29. ^ Magna agrees to buy Spanish auto seat maker Viza Geca
  30. ^ "BMW's self-driving cars of the future will have 3D vision". Digital Trends.
  31. ^ a b "Magna International Inc gears up for 42% revenue boom over the next decade as cars get more complicated". Financial Post.
  32. ^ a b "Magna International joins team developing automated driving systems". The Star.
  33. ^ "Magna takes 'significant step' in enabling fully autonomous vehicles". Automotive News.
  34. ^ "Magna International Inc to build BMW's new hybrid as the world's only contract auto manufacturer". Financial Post.
  35. ^ "Magna To Share Its Vision Of Future Mobility At IAA Frankfurt". StartUs Magazine.
  36. ^ Barkholz, David. "How Magna's electrified Focus wowed Ford". Automotive News. Retrieved January 22, 2016.
  37. ^ "2016 Automotive News PACE Awards". Autonews.com. Retrieved April 8, 2016.
  38. ^ A car company you've never heard of is about to have its moment

External links[edit]