Magna International

Magna International Inc.

Type	Public
Traded as	NYSE: MGA TSX: MG
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	US$ 034.835 billion (2013)[1]
Operating income	US$ 01.9 billion (2013)[1]
Net income	US$ 001.561 billion (2013)[1]
Total assets	US$ 17.990billion (2013)[1]
Total equity	US$ 09.623 billion (2013)[1]
Number of employees	130,000
Website	www.magna.com

Magna at Buttonville Airport.

Magna International Inc. (TSX: MG)(NYSE: MGA) 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. 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.

Capabilities and products

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

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

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.

Political connections

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 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.

Restatement

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

• Linamar
• MI Developments Inc.

References

External links

• Official website