- Magna International
Magna International Inc. Type Public Traded as NYSE: MGA TSX: MG Industry Automotive systems, components and modules Founded 1957 Headquarters Aurora, Ontario, Canada Key people Frank Stronach, Director and Honorary Chairman
Donald Walker, CEO
Vincent J. Galifi, Executive VP & CFO
Products See products listing. Revenue $24.1 billion USD (year end 2010), $7.3 billion (2nd quarter 2011) Operating income $362 million USD (2nd quarter 2011) Net income $282 million USD (2nd quarter 2011) Employees 104,000 (August 2011) Website www.magna.com
Magna International Inc. (TSX: MG), is an automotive supplier headquartered in Aurora, Ontario, Canada. It is Canada's largest automobile parts manufacturer, and one of the country's largest companies. It owns the Magna Steyr automobile production company of Austria.
Magna also manufactures auto parts that are primarily supplied to GM, Ford Motor Company, and Chrysler LLC. In addition to the Big 3 U.S. automakers, Magna's major customers include Volkswagen, BMW and Toyota. In Europe, Magna Steyr holds contracts for the assembly of the Peugeot RCZ, Aston Martin Rapide and Mini Countryman.
Magna has approximately 104,000 employees in 269 manufacturing operations and 84 product development, engineering and sales centres in 26 countries.
The company was founded in 1957 by the Austrian-born Frank Stronach as Multimatic. 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.
The Sunday Telegraph (Psychic Division) in London reported January 7, 2008 that Magna International was on the short list of bidders to purchase Aston Martin Lagonda Limited from Ford Motor Company. Their bid was unsuccessful however, and the company instead went to a British consortium led by Dave Richards of Prodrive for £479 million.
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.
Attempted GM Europe purchase
On May 26, 2009, BBC online reported that German government was considering 3 proposals for acquisition of Opel and Vauxhall including a Russian-backed bid from Magna. On May 29, 2009, CNN online reported that Fiat has pulled out of Opel/Vauxhall acquisition talks leaving Magna as the only contender. The German government later backed the deal.
On 30 May 2009, it was announced that a deal had been reached to transfer GM's Opel assets to a separate company majority-owned by a consortium led by Sberbank of Russia (27.5%), Magna International of Canada (27.5%), and Opel employees and car dealers (10%). GM is expected to keep a 35% minority stake in the new company. Less than a month later, however, GM indicated that it has not yet closed the deal with Magna and is considering other late bids, including one from Beijing Automotive Industry Holding Corporation.
Magna's plans for Opel include attracting GM or third-party carmakers to build their cars and electric vehicles in Antwerp. If Opel needed to reduce production of its own core models then any unused capacity could be used to manufacture vehicles for other carmakers. Inside sources close to Magna revealed that some of the possible third party carmakers include Ford and PSA Peugeot Citroen.
It was announced on 10 September 2009 that GM had closed a deal with Magna for the sale of GM Europe, with the approval of the German government. With this move, Magna Chairman Frank Stronach aims to take Magna from its current role as a parts supplier to an expanded role as a global automaker that ranks “amongst the leaders in selling and building electric cars.”
On 3 November 2009, the GM board called off the Magna deal after coming to the conclusion that Opel was crucial to GM's global strategy.
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 was formed as a joint venture between Magna and its founder's enterprise.
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 to Ford in August 2008 to demonstrate a Ford Focus it had procured and converted to battery operation on its own time and expense. The result was a contract to supply an electric drivetrain for the North American version of the 2011 all-electric Focus BEV. By August 2009, a team of Magna employees was working along with Ford engineers in Dearborn. 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.
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. 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. It is believed that this decision had a negative impact on the Progressive Conservatives in the next provincial election.
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- ^ "GM Asks Beijing Auto for Enhanced Offer for Opel... What Happened to That Other Guy, Magna?". Theautochannel.com. 2009-06-25. http://www.theautochannel.com/news/2009/06/25/467151.html. Retrieved 2009-10-25.
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- ^ "Magna E-Car Systems at a Glance - Hybrid & Electric Vehicles/Systems | Magna International Inc". Magna.com. 2010-08-31. http://www.magna.com/xchg/ecar_systems/XSL/standard.xsl/-/content/12_807.htm. Retrieved 2011-03-02.
- ^ Colin Mathews (2009-02-02). "Ford And Magna International To Partner On Electric Vehicle - The Car Connection". Blogs.thecarconnection.com. http://blogs.thecarconnection.com/marty-blog/1018261_ford-and-magna-international-to-partner-on-electric-vehicle. Retrieved 2009-10-25.
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- ^ Zoia, David E. (2009-10-21). "Magna: More EV Programs to Come". Wardsauto.com. http://wardsauto.com/ar/magna_more_ev_091021/. Retrieved 2009-10-25.
Magna International Inc. Corporate Directors Annual Revenue Employees71,000 Stock Symbol Website Related See also: GM Europe
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