About Magna Steyr L.L.C.
Through its various subsidiaries and divisions, Magna International makes just about everything needed to put together a motor vehicle. Besides being one of the world's largest automotive suppliers, Magna also considers itself a technology company delivering mobility solutions. The company makes body exteriors and chassis, power and vision technologies, seating systems, and lighting and mirrors. Operations in North America and Europe represent more than 90% of total revenues.
The company, based in Ontario, Canada, operates segments along geographic lines to be more responsive to customers' needs. Its segments include North America (which generated more than half of Magna's total revenue in 2017), Europe (about 40%), Asia (less than 10%), and Rest of World (1%). The Rest of World markets include developing regions such as Africa, Asia, Eastern Europe, and South America. Magna boasts close to 350 manufacturing facilities and roughly 95 product development, engineering, and sales centers in nearly 30 countries. It follows a decentralized mode of operation, meaning its businesses operate independently.
Beginning in 2018, Magna will be reporting sales and other financial metrics based on four global, product-oriented operating segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. The new structure aims at capitalizing on key trends such as lightweighting, electrification, autonomy and mobility, and more closely aligns with how vehicles are being developed. There is also greater opportunity for cross-group synergies.
Sales and Marketing
BMW,?Daimler, Fiat/Chrysler, Ford, General Motors, and Volkswagen accounted for more than 80% of Magna's total sales in 2017.
Magna has enjoyed sizable revenue and profit growth since 2012 as demand for new cars continues to strengthen around the world. Sales rose 7% to a record $38.9 billion during 2017, thanks to business growth in North America with the launch of new programs, and a 16% increase ($2 billion) in European sales. The Asian market also contributed to overall sales growth with a 4% increase to $2.8 billion.
Although cost of goods sold increased by $2.1 billion in 2017 due in part to higher material, overhead and direct labor costs, revenue growth drove Magna International's net income higher by about 9% to a record $2.2 billion for the year. The company's operating cash levels climbed 2% to $3.3 billion during the year thanks to higher cash earnings.
Magna considers itself agile in its ability to shift business activities to accommodate market demands and has established an entrepreneurial culture that allows it to aggressively and quickly develop new solutions and technologies. The company is focused on new product innovation and geographic expansion to grow its business.
Occasionally partnering with tech startups and universities, Magna attracts talent and leverages new ideas such as machine learning and medical technology to spur future innovations. It has recently developed products using new technologies such as driver biometric monitoring tools, a 48 volt drivetrain that reduces CO2 emissions, and its Liteflex modular approach to making more lightweight vehicle doors. Its new MAX4 Autonomous Drive Platform utilizes RADAR ,LiDAR and ultrasonic sensors, and uses a modular design which can be used with any vehicle including hybrids and EVs.
Considering the increased demand for Advanced Driver Assistance Systems (ADAS), Magna has created its proprietary high-definition iCON RADAR, which uses a military-grade radar to continually scan the environment in four dimensions with a range of more than a thousand feet. To solidify its position in the mobility market, in 2018 the company has partnered with rideshare service provider, Lyft, to co-develop new self-driving systems for the automotive industry and access the data generated by the more than eight billion kilometres travelled per year on the Lyft network.
The company also plans to continue to expand in the fast-growing Asian market, especially China, where it has recently established joint ventures. In 2018 it formed a JV with GAC Component Co., Ltd in Changsha, China to produce a lightweight liftgate for a crossover vehicle. In 2017, a JV with Huayu Automotive Systems Co., Ltd. (HAS) in Shanghai is supporting Magna's first e-drive business in China, and another Shanghai JV established in 2016 with Hubei Aviation Precision Machinery Co., Ltd. bolstered its expertise in seat mechanisms and structures.
Mergers and Acquisitions
Several 2016 acquisitions increased Magna's product breadth and increased revenues for the company. Magna acquired the BO¨ CO Group of Companies late in 2016. BO¨ CO supplies latches, hinges and strikers, with sales primarily to the BMW, Daimler and Audi. Another 2016 acquisition was Telemotive AG, an engineering service provider in the field of automotive electronics. Telemotive has sales primarily to BMW, Volkswagen and Daimler.
In January 2016, Magna completed the acquisition of German transmission manufacturer Getrag for $1.9 billion, as part of its continued plan to expand its service and product lines for auto makers. Getrag is a global supplier of automotive transmission systems, including manual, automated-manual, dual clutch, hybrid and other advanced systems.
Magna International has historically expanded its product lines through acquisitions of other auto parts manufacturers. In early 2011, Magna Seating acquired Germany-based Vogelsitze GmbH, which made seats for buses and passenger trains. In 2012, 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. Also in 2012, to strengthen its automotive pump operations, Magna purchased the remaining 50% interest it didn't already own of STT Technologies, which made transmission and engine related pumps for the North American market.
1965 RESEARCH DR STE 100
Troy, MI 48083-2137
Phone: 1 (248) 740-0214
Employer Type: Privately Owned
Mbr: Michael J Scott
Employees (This Location): 170
Employees (All Locations): 170