Magna International Inc. Business Report FY ended Dec. 2015
|(in million USD)|
|FY ended Dec. 31, 2015||FY ended Dec. 31, 2014||Rate of change
|External Production Sales by Region*|
|Rest of World||454||668||(32.0)||5)|
*External production sales do not include sales from complete vehicle assembly activities nor tooling, engineering, and other activities.
1) Net Sales
-The Company’s sales in the fiscal year ended December 31, 2015 decreased by 6.6% from the previous year to USD 32,134 million. The weakening of various currencies versus the U.S. dollar resulted in a reduction of sales of approximately USD 3.35 billion in the fiscal year ended December 31, 2015 compared to 2014. Excluding the effect of foreign currency translation, the Company’s sales increased by 3% compared to 2014.
2) North America
-External production sales in North America increased by 2.1% in the fiscal year ended December 31, 2015 to USD 17,759 million. The main contributing factor to this increase was the launch of new programs including the Ford Transit, Ford Mustang, Ford Edge, Chevrolet Colorado, GMC Canyon, Mercedes-Benz C-Class, and GM full-size SUVs. These gains were partially offset by negative currency effects, lower sales on existing programs, divestitures of certain product segment, and customer price concessions.
-In the fiscal year ended December 31, 2015, the Company’s external production sales in Europe decreased by 18.0% to USD 7,252 million. Factors leading to the decrease in sales include negative effects from weakening foreign currencies versus the U.S. dollar, lower production sales on existing programs, the conclusion of certain programs, and customer price concessions. The launch of new programs in Europe partially offset the decrease in sales. These programs included the Volkswagen Caddy, Volkswagen Passat, Ford Transit, BMW 2-Series; and BMW X4.
-The Company’s external production sales in Asia increased by 2.1% over the previous year to USD 1,612 million in the fiscal year ended December 31, 2015. The launch of new programs, particularly in China and India, along with acquisitions such as the Xingqiaorui Partnership, both contributed to the increase in sales. These increases were partially offset by negative currency effects, lower production sales on current programs, and customer price concessions.
5) Rest of World
-The Company’s external production sales in the Rest of World region decreased by 32.0% to USD 454 million in the fiscal year ended December 31, 2015. Decrease in sales came from weakening currencies versus the U.S. dollar and lower production sales on existing programs, which were partially offset by new program launches in Brazil, and customer price increases.
-The Company announced that it has signed an agreement to acquire Stadco Automotive Ltd., an independent Tier 1 Body-In-White supplier based in the United Kingdom. Stadco has expertise in steel and aluminum stampings as well as complex vehicle assemblies. Its customers include Jaguar Land Rover, Ford, and General Motors. Stadco has four manufacturing facilities located in the UK and one in Germany, employing approximately 1,400 people. The transaction is expected to close in the fourth quarter of 2015. (From a press release on October 2, 2015)
-The Company announced that it has signed an agreement to acquire the Getrag Group of Companies for approximately EUR 1.75 billion. Getrag offers a range of transmission systems including manual, automated-manual, dual-clutch, hybrid and other systems. In addition to its wholly-owned operations, Getrag has significant joint-venture relationships with Ford, as well as Chinese auto makers Jiangling and Dongfeng. Including joint-venture locations, Getrag has approximately 13,500 employees and operates 13 manufacturing and 10 engineering centers in nine countries in Europe, Asia and North America. The transaction is expected to close near the end of 2015. (From a press release on July 16, 2015)
-The Company announced that it has acquired the head-up display and electronic components business units of Philips & Lite-On Digital Solutions (PLDS) in Wetzlar, Germany, and PLDS' ultrasonic sensor business in Hsinchu, Taiwan. The transaction is aimed at strengthening the Company's electronics engineering capabilities in Europe. As part of the transaction, approximately 60 PLDS employees will join the Company. PLDS is a leader in digital convergence. Its automotive business units in Wetzlar and Hsinchu develop products in the areas of automotive wireless charging, head-up display technology and connectivity, and various electro-mechanical devices. (From a press release on February 3, 2015)
-Grupo Antolin-Irausa, S.A. announced that it has completed the acquisition of the interiors business of the Company. The completed sale transaction does not include two of the Company’s joint ventures in China. Grupo Antolin will integrate the interiors business as a new business unit named Cockpits and Interior Trim, which will be headquartered in Allershausen near the city of Munich, Germany. The purchase price for the operations is approximately USD 549 million. (From a press release on August 31, 2015 and April 16, 2015)
-Samsung SDI Co. Ltd. will acquire the entire battery pack business from Magna Steyr, an Austria-based operating unit of the Company, including all 264 employees, production and development sites and existing contracts of the business. The transaction is expected to be completed during the first half of 2015. (From a press release on February 23, 2015)
-The Company and Chongqing Hongli Zhixin Automotive Parts Manufacture Co., Ltd. have announced the signing of a 50/50 joint venture agreement to provide complete seating systems and seating components to Changan Ford and other Chinese customers. Hongli Zhixin, a leading independent seating supplier in China with capabilities in foam, trim and structures, brings its manufacturing facility in Harbin and two production programs to the joint venture. The Hongli Zhixin-Magna headquarters will be located in Chongqing. (From a press release on November 25, 2015)
-The Company and Chongqing Xingqiaorui have agreed to form a strategic joint venture in China. Under the terms of the agreement, Cosma International, the Company's body and chassis operating unit, will hold a 53% stake, while Xingqiaorui will hold the remaining 47%. The transaction is expected to close in late 2015 or early 2016. Xingqiaorui, a Tier 1 supplier of automotive body-in-white components, will contribute two manufacturing facilities in Chongqing and one in Hangzhou to the joint venture, while the Company contributes its new Chongqing facility. (From a press release on May 4, 2015)
-The Company announced that its Magna Powertrain operating group was nominated by The Volkswagen Group as a "Future Automotive Supply Tracks" (FAST) strategic partner for performance in manufacturing driveline systems for Volkswagen vehicles. The Company was one of 44 suppliers nominated by Volkswagen as a FAST strategic partner. (From a press release on August 25, 2015)
-The Company announced that it is supplying front and rearview camera systems on the second-generation Ford S-MAX. The front and rearview camera systems support various features including rear static and dynamic guiding lines, rear parking distance control indicators, and a 180 degree view split into three screens displayed in the vehicle’s cockpit. The front and rearview camera systems supplied on the new S-MAX will also be an option on the 2016 model Ford Galaxy. (From a press release on September 14, 2015)
-The Company announced that it is supplying its intelligent Dynamax all-wheel-drive coupling on a global basis to power the AWD system of the all-new Kia Sorento. The Dynamax coupling is manufactured by the WIA-Magna Powertrain joint venture in Asan, Chungcheongnam-do, South Korea, and shipped to Kia's Sorento assembly locations in South Korea and the United States. (From a press release on May 18, 2015)
-The Company announced that its mirrors manufacturing division in Shanghai, China, has received the Volvo Cars Quality Excellence (VQE) Award. The division supplies Volvo with outside mirrors that are equipped with features such as power folding, integrated turn signals, electrochromic darkening, and heat/temperature sensors. (From a press release on December 4, 2015)
-The Company announced that it has received the Best Product Development Performance Award from Mahindra. The award recognizes the excellence of Cosma International, the Company's body and chassis operating group, for the design, engineering and development of its ladder frame for Mahindra's Scorpio SUV and other vehicle platforms. The complete design, engineering and development of the frame was done at the Company's product development and engineering centers in Bangalore and Pune. Manufacturing of the frames began in 2014 in Pune. (From a press release on October 6, 2015)
-The Company announced that its mirrors manufacturing division in Holland, Michigan, U.S., has received the Volvo Cars Quality Excellence (VQE) Award. The division achieved this through supplying Volvo with its Infinity rearview mirror, an Automotive News Pace Award winner. With a workforce of more than 700 employees, Magna Mirrors Holland manufactures auto-dimming mirrors and interior and exterior electrochromic (EC) glass for automakers including Volvo Cars Group, GM, Ford and FCA. (From a press release on September 24, 2015)
-The Company announced that Ford Motor Company named Magna Seating one of its Top Suppliers in South America in the Body Interior segment. Magna Seating has seven facilities in South America supplying multiple customers. The Company has manufactured complete seats on 15 of Ford’s vehicle platforms globally. (From a press release on August 13, 2015)
-The Company announced that it has received a Ford World Excellence Award in the Smart category. Two recent examples of the Company’s innovations can be found on the all-new Ford F-150 pickup truck. These include the PureView seamless sliding window and SurroundVue, a 360-degree camera system that is available for the first time on a pickup truck. (From a press release on June 18, 2015)
-The Company announced that it has received an Excellence in Delivery Award from Honda Motor Co., Ltd. The award recognized the Company's electronics facility in Holly, Michigan, U.S., for achieving a top rating in delivery of its rearview cameras. The Company supplies rearview cameras for several Honda vehicles including the Accord, Civic and CR-V. (From a press release on May 21, 2015)
-The Company received a 2015 Automotive News Pace Award for its PureView seamless sliding window. (From news releases issued by multiple sources on April 20, 2015)
-The Company's Corporate Constitution requires a minimum of 7% of its pre-tax profits for any fiscal year to be allocated to research and development during that fiscal year or the fiscal year that immediately follows.
-The Company has completed validation testing on the multi-material lightweight vehicle (MMLV) concept it developed in cooperation with Ford Motor Co. and the U.S. Department of Energy (DOE). The Company recently co-presented the test results with Ford at the SAE 2015 Government/Industry Meeting in Washington, D.C. As part of the presentation, results of a life cycle assessment (LCA) study were disclosed, in which the lightweight auto parts of the MMLV vehicle design were compared to the conventional auto parts of the baseline 2013 Ford Fusion. The LCA study predicts that the cradle-to-grave total net savings of the MMLV (in percentage basis), relative to the cradle-to-grave LCA of the 2013 Fusion, resulted in a 16% improvement in global warming potential and 16% improvement in total primary energy (fuel usage plus the energy needed to produce and recycle materials). (From a press release on January 30, 2015)
Partnership with Argus Cyber Security Ltd. for cyber-attack defense
-The Company partnered with Argus Cyber Security Ltd. to provide a vehicle security solution to protect against cyber-attacks. In partnering with Argus, the Company contributes its range of automotive electronic systems and safety-critical system design expertise, while Argus provides its Intrusion Prevention System (IPS) and cloud-based monitoring service. The security system actively monitors suspicious or malicious activity for early detection and prevention, and can be integrated into any vehicle model line without changing the vehicle’s existing architecture.
MILA Plus hybrid sports car concept
-The Company is set to debut MILA Plus, an innovative two-seat hybrid sports car, at the Geneva Motor Show 2015. With an all-electric range of 75 km and a vehicle weight of 1,520 kg, the concept vehicle achieves reduced CO2 emissions of 32 g/km. The structure of MILA Plus is based on an extruded aluminum space frame which has a number of advantages over a steel structure such as lower weight, modular structural flexibility, and the ability to accommodate different driveline configurations. The modular body-in-white (BIW) concept also allows the use of components and systems from large series production, thus enabling improved manufacturing efficiency and flexibility for global automakers. (From a press release on February 26, 2015)
EYERIS Generation 3.0 vision system
-The newest version of the Company’s EYERIS vision system improves the field of view and offers enhanced camera resolution compared to previous generations. In combination with a radar system, EYERIS provides lane keeping assistance, automatic high beams, automatic emergency braking, and adaptive cruise control. The EYERIS Gen 3.0 system will be available on FCA’s 2016 Jeep Grand Cherokee and on the 2017 Chrysler Pacifica.
Camera-based automatic emergency braking (AEB) system
-The Company has developed the automotive industry’s first camera-based emergency braking system. The system utilizes a forward-facing camera to provide forward-collision warning and automatic emergency braking and at speeds between 8 km/h and 60 km/h. In addition, the system can detect vehicles approximately 60 meters away. The system will be available on the 2016 Chevrolet Volt.
Trailer tow backup assist system
-The Company’s trailer tow backup assist system allows a driver to steer the trailer with a control knob, while the truck steers itself. A rear view camera measures the angle between the truck and trailer. The system is featured on the 2016 Ford F-150 as part of its Pro Trailer Backup Assist System.
Active aerodynamic systems
-The Company has expanded its product development in aerodynamic systems to include active front deflectors, active liftgate spoilers, and active tailgate and underbody panels.
Carbon fiber hood
-The Company is engaged in volume production of carbon fiber hoods for the 2016 Cadillac ATS-V and CTS-V models. The hoods are 27% lighter than aluminum hoods and 72% lighter than steel hoods.
Aluminum oil pans and aluminum die cast components
-The Company, together with General Motors, developed aluminum transmission oil pans and thirteen aluminum die-cast body components for the Cadillac CT6 Sedan. The oil pan provides weight savings of approximately 60%. The high-pressure vacuum die-casting process used to manufacture the aluminum body components allows the components to have thinner walls, which reduces weight. In addition, the process allows for single-piece components to be created, reducing the number of parts and thus reducing assembly complexity.
|(in million USD)|
|FY ended Dec. 31, 2015||FY ended Dec. 31, 2014||FY ended Dec. 31, 2013|
Investment outside Canada
-The Company announced that it has started production at two new manufacturing facilities in the Sanand region of the state of Gujarat, India. Both plants are located within a supplier park adjacent to the Ford Motor Co. assembly plant. One of the new facilities assembles and provides just-in-time delivery of complete seat systems for Ford. The 215,000-square-foot plant is expected to employ approximately 200 people at full production to produce approximately 240,000 complete seat systems per year. At the second new facility in Sanand, the Company manufactures body and chassis systems for Ford. The 356,000-square-foot plant is expected to employ approximately 400 people at full production. (From a press release on December 9, 2015)
-The Company announced that it has opened a new automotive seat manufacturing facility in Allende, Coahuila, Mexico. The new Magna Seating Allende facility, a 108,000-square-foot building, will employ approximately 1,000 people when it reaches full production in 2017. The Company will invest USD 8 million over the next three years in the facility, which will cut and sew the soft trim material used in seats. (From a press release on November 23, 2015)
-The Company announced that it will be investing more than USD 16 million to expand its Mirror Systems plant in Monterrey, Mexico, as a result of new mirror business. The expansion will add an additional 55,000 square feet to the 80,000-square-foot facility and introduce an automated paint line, an assembly line and a new injection molding section. The expansion is expected to add approximately 60 new jobs to the current workforce of over 620 employees. Construction started in August 2015 and is expected to be completed in August 2016. (From a press release on September 2, 2015)
-The Company announced the start of construction at a new automotive exteriors manufacturing facility in Queretaro, Mexico. With an investment of approximately USD 135 million, the Company plans to construct a 26,400-square-meter (285,000-square-foot) facility and expects to employ approximately 600 people within the first year. The facility will produce molded and painted exterior parts including fascias and rocker panels for global automakers. The plant is expected to open in the first quarter of 2016. (From a press release on March 18, 2015)
-The Company announced the grand opening of Autotek Morelos, a new greenfield facility in Emiliano Zapata, Morelos, Mexico, for the assembly of automotive chassis products. The 130,000-square-foot facility will produce structural welded assemblies for global automakers including Nissan, and is expected to employ approximately 300 people at full production. (From a press release on February 18, 2015)