Through its various subsidiaries and divisions, Magna International makes just about everything needed to put together a motor vehicle. Magna Steyr, its largest division, offers vehicle engineering and assembly. Magna's interior and exterior systems division makes trim, lighting, sealing systems, instrument and door panels, and sound insulation. Cosma International makes body and chassis systems. Magna Powertrain offers transaxles, transmission systems, and engine parts, while Magna Mirrors makes mirrors and driver assistance products. Other Magna operations include Seating, E-Car Systems, Electronics, Roof, and Closures. Its geographic markets include North America, Europe, Africa, and Asia.
The company operates through almost 310 manufacturing operations and roughly 90 product development, engineering, and sales centers in nearly 30 countries. Magna follows a decentralized mode of operation, meaning its businesses operate independently.
The company has restructured itself along geographic lines to be more responsive to customers' needs, and is paying particular attention to the "Rest of World" market that encompasses developing regions such as Africa, Asia, Eastern Europe, and South America.
Sales and Marketing
BMW, Daimler, Fiat/Chrysler, Ford, GM, and VW accounted for approximately 83% of Magna's total sales in 2012.
Magna has enjoyed sizable growth over the years as the global automotive sector recovers. Its total sales were up by 7% from $28.8 billion to $30.8 billion during 2011 to 2012. Profits also skyrocketed by 41% from $1 billion to $1.4 billion during that same time period. Both these revenue and profit totals represented historical milestones for the company.
The company attributes the growth in 2012 to an increase in light vehicle production in North America (18%) and western Europe (7%). It also was helped by a 33% increase in Rest of World production sales and by acquisitions it made in 2012.
Magna International seeks expansion opportunities in the Eastern European and Russian markets by strengthening its ties to the GAZ Group, Russia's largest auto maker. Magna has several facilities in Russia, including a plant in Kaluga that makes parts for Volkswagen (VW), Skoda, Renault, and Peugeot. It also has facilities in the St. Petersburg area.
Farther East, Magna's Cosma International formed a joint venture in 2011 with China-based Guangzhou Automobile Group Component Co. (GACC). The business entity, Changsha Cosma Automotive, manufactures major body and chassis components and structural assemblies from a new facility in Changsha City in the Hunan Province. The company also opened new facilities in India and South Korea.
Looking to the Western Hemisphere, Magna Seating acquired Germany-based Vogelsitze GmbH in early 2011. Vogelsitze makes seats for buses and passenger trains. A year later Magna obtained Verwaltungs GmbH, a maker of automotive vacuum, engine, and transmission pumps with two facilities in Germany and one in each of China and Bulgaria.
Strengthening its automotive pump operations even further, in 2012 Magna purchased the remaining 50% interest it didn't already own of STT Technologies. STT makes transmission and engine related pumps and caters to the North American market.