Magna International
Encyclopedia
Magna International Inc. , 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 part
s 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.
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.
Magna purchased CTS Fahrzeug-Dachsysteme
, the world's leading supplier of convertible
roofs, from Porsche
in November 2005.
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.
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 vehicle
s 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 car
s.”
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.
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.
s 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 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.
Aurora, Ontario
Aurora is an affluent town in York Region, approximately 20 km north of Toronto. It is partially situated on the Oak Ridges Moraine, and is a part of the Greater Toronto Area and Golden Horseshoe of Southern Ontario.Many Aurora residents commute to Toronto and surrounding communities.In the...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
. It is Canada's largest automobile
Automobile
An automobile, autocar, motor car or car is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor...
parts manufacturer, and one of the country's largest companies. It owns the Magna Steyr
Magna Steyr
Magna Steyr Fahrzeugtechnik AG & Co KG is an automobile manufacturer based in Oberwaltersdorf, Austria, with its primary manufacturing location in Graz...
automobile production company of Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
.
Magna also manufactures auto part
Auto part
This is a list of auto parts, which are manufactured components of automobiles:-Body and exterior:Body components, including windows and trim:-Engine cooling system:* Air blower* Coolant hose* Cooling fan* Fan blade* Fan clutch* Radiator...
s that are primarily supplied to GM, Ford Motor Company
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
, and Chrysler LLC
Chrysler
Chrysler Group LLC is a multinational automaker headquartered in Auburn Hills, Michigan, USA. Chrysler was first organized as the Chrysler Corporation in 1925....
. In addition to the Big 3
Big Three automobile manufacturers
The Big Three, when used in relation to the automotive industry, most generally refers to the three major American automotive companies:Ford, General Motors, and Chrysler...
U.S. automakers, Magna's major customers include Volkswagen
Volkswagen
Volkswagen is a German automobile manufacturer and is the original and biggest-selling marque of the Volkswagen Group, which now also owns the Audi, Bentley, Bugatti, Lamborghini, SEAT, and Škoda marques and the truck manufacturer Scania.Volkswagen means "people's car" in German, where it is...
, BMW
BMW
Bayerische Motoren Werke AG is a German automobile, motorcycle and engine manufacturing company founded in 1916. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands...
and Toyota. In Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
, Magna Steyr holds contracts for the assembly of the Peugeot RCZ
Peugeot RCZ
The Peugeot RCZ is a sports car manufactured by Peugeot. It has been on sale since May 2010 and is currently available in almost 80 countries.It was officially introduced at the Frankfurt Auto Show in 2009 and was initially announced as the 308 RCZ concept car at the 2007 Frankfurt show...
, Aston Martin Rapide
Aston Martin Rapide
The Aston Martin Rapide is a four-door, high-performance sport saloon, which British luxury marque Aston Martin introduced in early 2010. It was first presented as a concept car at the North American International Auto Show in 2006. The Rapide name is a reference to the Lagonda Rapide, a saloon car...
and Mini Countryman
Mini Countryman
The Mini Countryman is a crossover SUV car, and is the first such car to be launched under the Mini marque by BMW. The car was announced in January 2010, and formally launched at the 2010 Geneva Motor Show as the first Mini crossover SUV, and the first 5-door model...
.
Magna has approximately 104,000 employees in 269 manufacturing operations and 84 product development, engineering and sales centres in 26 countries.
History
The company was founded in 1957 by the Austrian-born Frank StronachFrank Stronach
Frank Stronach, CM is an Austrian-Canadian businessman. He is the founder of Magna International, an international automotive parts company based in Aurora, Ontario, Canada, and Magna Entertainment Corp., which specializes in horse-racing entertainment...
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
New Venture Gear
New Venture Gear, a division of Magna Powertrain, is a automobile transmission company. It was founded in 1888 under the name "New Process Gear" then in 1934 it was purchased by Walter Chrysler. In 1999 New Process Gear was renamed "New Venture Gear" when it became a joint venture between General...
, 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
CTS Fahrzeug-Dachsysteme
CTS Fahrzeug-Dachsysteme is a supplier of convertible tops. Long a subsidiary of Porsche AG, that company agreed to sell it to Magna International in late 2005 for roughly $470,000,000.- Current production of roofmodules :...
, the world's leading supplier of convertible
Convertible
A convertible is a type of automobile in which the roof can retract and fold away having windows which wind-down inside the doors, converting it from an enclosed to an open-air vehicle...
roofs, from Porsche
Porsche
Porsche Automobil Holding SE, usually shortened to Porsche SE a Societas Europaea or European Public Company, is a German based holding company with investments in the automotive industry....
in November 2005.
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
Aston Martin
Aston Martin Lagonda Limited is a British manufacturer of luxury sports cars, based in Gaydon, Warwickshire. The company name is derived from the name of one of the company's founders, Lionel Martin, and from the Aston Hill speed hillclimb near Aston Clinton in Buckinghamshire...
Lagonda Limited from Ford Motor Company. Their bid was unsuccessful however, and the company instead went to a British consortium led by Dave Richards
David Richards (racing)
David Pender Richards CBE is the chairman of Prodrive and Aston Martin, and a former team principal of the BAR and Benetton Formula One motor racing teams. He lives with his wife, Karen, in Warwickshire and has three children....
of Prodrive
Prodrive
Prodrive is a British motorsport and automotive engineering group based in Banbury, Oxfordshire, England. It designs, constructs and races cars for companies and teams such as Subaru, Aston Martin and Ford...
for £
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
479 million.
According to a NPR broadcast on March 23, 2007, Magna showed interest in acquiring the Chrysler division of DaimlerChrysler
DaimlerChrysler
Daimler AG is a German car corporation. By unit sales, it is the thirteenth-largest car manufacturer and second-largest truck manufacturer in the world. In addition to automobiles, Daimler manufactures buses and provides financial services through its Daimler Financial Services arm...
. However on 14 May 2007, it was announced that Cerberus Capital Management
Cerberus Capital Management
Cerberus Capital Management, L.P. is one of the largest private equity investment firms in the United States. The firm is based in New York City, and run by -year-old financier Steve Feinberg. Former U.S...
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 OpelOpel
Adam Opel AG, generally shortened to Opel, is a German automobile company founded by Adam Opel in 1862. Opel has been building automobiles since 1899, and became an Aktiengesellschaft in 1929...
and Vauxhall
Vauxhall Motors
Vauxhall Motors is a British automotive company owned by General Motors and headquartered in Luton. It was founded in 1857 as a pump and marine engine manufacturer, began manufacturing cars in 1903 and was acquired by GM in 1925. It has been the second-largest selling car brand in the UK for...
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
Sberbank
Sberbank Rossii is the largest bank in Russia and Eastern Europe. The company's headquarters are in Moscow and its history goes back to Cancrin's financial reform of 1841...
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
Beijing Automotive Industry Holding Corporation
Beijing Automotive Industry Holding Co Ltd is a state-owned enterprise and holding company of several Chinese automobile and machine manufacturers, such as Beijing Automobile Works Co Ltd, etc. Beijing Automotive Industry Holding Co Ltd 's state-run parents may include Beijing Automotive Group ,...
.
Magna's plans for Opel include attracting GM or third-party carmakers to build their cars and electric vehicle
Electric vehicle
An electric vehicle , also referred to as an electric drive vehicle, uses one or more electric motors or traction motors for propulsion...
s 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
PSA Peugeot Citroën
PSA Peugeot Citroën is a French manufacturer of automobiles and motorcycles sold under the Peugeot and Citroën marques. Headquartered in the 16th arrondissement of Paris, PSA is the second largest automaker based in Europe and the number eight in the world.-History:In December 1974 Peugeot S.A....
.
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
Frank Stronach
Frank Stronach, CM is an Austrian-Canadian businessman. He is the founder of Magna International, an international automotive parts company based in Aurora, Ontario, Canada, and Magna Entertainment Corp., which specializes in horse-racing entertainment...
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 car
Electric car
An electric car is an automobile which is propelled by electric motor, using electrical energy stored in batteries or another energy storage device. Electric cars were popular in the late-19th century and early 20th century, until advances in internal combustion engine technology and mass...
s.”
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.
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 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
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
with regard to all-electric (BEV
Battery electric vehicle
A battery electric vehicle, or BEV, is a type of electric vehicle that uses chemical energy stored in rechargeable battery packs. BEVs use electric motors and motor controllers instead of, or in addition to, internal combustion engines for propulsion.A battery-only electric vehicle or...
) 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
Dearborn, Michigan
-Economy:Ford Motor Company has its world headquarters in Dearborn. In addition its Dearborn campus contains many research, testing, finance and some production facilities. Ford Land controls the numerous properties owned by Ford including sales and leasing to unrelated businesses such as the...
. 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.
Political connections
The firm is also known for its political connections, such as having former PremierPremier
Premier is a title for the head of government in some countries and states.-Examples by country:In many nations, "premier" is used interchangeably with "prime minister"...
s 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
Mike Harris
Michael Deane "Mike" Harris was the 22nd Premier of Ontario from June 26, 1995 to April 15, 2002. He is most noted for the "Common Sense Revolution", his Progressive Conservative government's program of deficit reduction in combination with lower taxes and cuts to government...
and Brian Tobin
Brian Tobin
Brian Vincent Tobin, PC is a Canadian businessman and former politician. Tobin served as the sixth Premier of Newfoundland from 1996 to 2000. Tobin was also a prominent Member of Parliament and served as a Cabinet Minister in Jean Chrétien's Liberal government.- Early life, education, and family...
, 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
Parliament of Canada
The Parliament of Canada is the federal legislative branch of Canada, seated at Parliament Hill in the national capital, Ottawa. Formally, the body consists of the Canadian monarch—represented by her governor general—the Senate, and the House of Commons, each element having its own officers and...
for the federal Liberal Party
Liberal Party of Canada
The Liberal Party of Canada , colloquially known as the Grits, is the oldest federally registered party in Canada. In the conventional political spectrum, the party sits between the centre and the centre-left. Historically the Liberal Party has positioned itself to the left of the Conservative...
, but was defeated.
Magna International has also been noted for its connections to the Ontario Progressive Conservative Party and the Ontario Liberal Party
Ontario Liberal Party
The Ontario Liberal Party is a provincial political party in the province of Ontario, Canada. It has formed the Government of Ontario since the provincial election of 2003. The party is ideologically aligned with the Liberal Party of Canada but the two parties are organizationally independent and...
. In 2003, the Progressive Conservatives under Ernie Eves
Ernie Eves
Ernest Lawrence "Ernie" Eves was the 23rd Premier of the province of Ontario, Canada, from April 15, 2002, to October 23, 2003.-Beginnings:...
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.