Magna International (Magna)

Magna International supplies assembly parts for Ford, Toyota, Honda, Volkswagen, Porsche, General Motors, DaimlerChrysler, Mitsubishi, Hyundai, Great Wall Motors, etc.

In addition, Magna International owns the Austrian company Magna Steyr, specializing in the assembly of cars commissioned by other automakers (assembles cars of BMW X3, Mercedes E-Class and G-Class, Saab 9-3 Convertible, Jeep Grand Cherokee, Chrysler 300, Chrysler Voyager). Magna is the largest automaker in the world without its own brand (230,500 cars were produced in 2005).

Owners and Management

As of April 30, 2007, about 84% of the company's shares belonged to institutional investors, the rest was controlled by the family of the chairman of the board of directors of the company, Frank Stronak, and the company's managers. At the same time, the Stronakov family had a majority of class B shares (one share - 500 votes), so it controlled about 70% of the voting shares.

In 2007, Russian Machines, part of Oleg Deripaska's Basic Element holding, acquired a 20% stake in the company for $1.54 billion. After that, this package was pledged to banks upon receipt of a loan by Russian Machines and in the fall of 2008, due to a drop in the share price, it was transferred to creditor banks.

Frank Stronak - Chairman of the Board of Directors of the company

Performance indicators

Revenue in 2008 amounted to $23.7 billion, net profit - $71 million.

2007

Revenue in 2007 - $27.07 billion, net profit - $663 million.

Market capitalization as of June 5, 2007 - $10.17 billion. The total number of personnel is 83 thousand people (2007).

History

It was founded in 1957 under the name Multimatic.

In 1969, it was acquired by Magna Electronics.

Since 1973 it has a modern name.

2023: E-mobile bought out Magna's Russian business

The Russian company "E-mobile" bought the business of the Canadian manufacturer of automotive components Magna in the Russian Federation. This deal became known on August 11, 2023.

As Kommersant writes with reference to the reports of Magna International, the sale of Russian assets brought the company a loss of $15 million. In addition, the manufacturer wrote off $376 million in the second quarter of 2022 amid the suspension of factories in the Russian Federation.

E-mobile bought the business of the Canadian manufacturer of automotive components Magna in Russia

According to the SPARK-Interfax system, at least four of the five subsidiaries of the Canadian manufacturer in Russia - Magna Sitting Rus, Peterform, Magna St. Petersburg and Magna Sitting Nizhny Novgorod - were transferred to E-mobile. A number of interlocutors in the industry told Kommersant that the deal could be carried out in the interests of a large buyer, who, under the conditions of sanctions, decided not to advertise himself.

According to the newspaper's sources in the auto component market, the former factories of the Canadian company can only be restarted if the team that knows the production processes is preserved. At the same time, the new owner faces the question of finding suppliers - they, for example, may be in China. As for buyers, E-Mobile will be able to reorient its products to production facilities engaged in the assembly of Chinese models in Russia.

Magna's assets in Russia included production sites in car clusters in St. Petersburg, Nizhny Novgorod, Kaluga and Naberezhnye Chelny. The company supplied plastic, metal parts and seats to the largest car manufacturers in the Russian Federation. In particular, these were seats for Volkswagen, Skoda, Ford Transit lines, plastic parts for the same manufacturers, as well as Nissan, Peugeot, Citroen, Mitsubishi, Toyota, Mercedes and GAZ, the newspaper notes.^[1]

2022: Dismissal of employees in Russia

Magna International, the largest auto parts manufacturer, Russia is laying off employees in, which became known in early August 2022. LLC, a member of the group, Peterform reduces downtime losses by offering employees to quit by agreement of the parties with compensation in the amount of five salaries, Kommersant the company's employees said. More here

2020

Creation of an electric vehicle equipment company

At the end of December 2020, LG Electronics announced the creation of a joint venture with Canadian automotive component manufacturer Magna International to develop equipment for electric vehicles. The project is estimated at $1 billion. Read more here.

Investing in Waymo

On March 2, 2020, Waymo announced that it had raised $2.25 billion in investments. This money will go to the global expansion of the developer of self-driving cars. Read more here.

Magna International in Russia

The company has a number of factories in Russia for the production of plastic and metal auto components; one of them is located in the Kaluga region, two in St. Petersburg (in Kamenka and Shushary). The plants were built to provide components for automotive clusters created in these regions. The company also has a production site in Nizhny Novgorod.

• On December 22, 2006, Magna signed a framework contract state with the Russian Corporation, Russian Technologies which controls the automotive company "," on AvtoVAZ cooperation in the development of a new Lada car platform and the organization of a new car assembly plant in Togliatti. It was planned that the total cost of the project will be $1.6-1.7 billion; the total capacity of the plant will be 440 thousand cars per year.

• In 2009, the management of Rostechnologies froze the SP project MAGNA-AUTOVAZ.

• In December 2014, Konstantin Shishkov - Chief information officer of Peterform LLC (Russian division of Magna Cosma) - gave an interview to the TAdviser portal.

Notes