Magna International Inc., a global automotive supplier based in Canada has announced that it is restructuring the management of the company along product lines. The company is conducting this exercise to align its global operations better with its long-term strategy for growth. The move will also help Magna to cater better to its customers and to enhance synergies across product groups.
Along with the changes in the management structure, there will also be changes in financial reporting segments from the beginning of 2018. This will facilitate greater transparency to investors and will make comparison with competitor companies. From January 2018, Magna’s operations will be divided into four global, product-oriented operating segments:
• Body Exteriors & Structures will include Magna’s body and chassis business (Cosma), exteriors, roof systems, sealing systems and fuel systems divisions;
• Power & Vision will comprise Magna’s powertrain, electronics, mirrors, lighting and closures divisions;
• Seating Systems will include Magna’s seat assembly facilities and its foam, trim, structures and mechanisms operations; and
• Complete Vehicles will relate to contract manufacturing operations and complete vehicle engineering centers (Magna Steyr).
Commenting on the changes, Don Walker, Magna’s Chief Executive Officer said that the changes that are being made to the management structure are meant to increase Magna’s ability to innovate, by encouraging greater collaboration and sharing of expertise across the company. For example, Magna’s Power & Vision segment has electronics and software expertise which can drive growth in other segments also.
He added, “ As we address industry trends, including electrification, autonomy and new mobility, we will continue to build on the competitive advantage of our robust portfolio and deep systems knowledge, allowing us to provide our customers with more complete solutions.”
Vince Galifi, Magna’s Chief Financial Officer said that with the changes in mobility, Magna has recognized the need to provide a higher level of transparency. The new segmentation will align better reporting in comparison to its peers in the industry and will allow investors and the financial community to gain greater insight into the company’s unique business model.
Magna has a workforce of 163,000 employees spread across 328 manufacturing facilities and 99 product development, engineering and sales centers in 29 countries and is one of the largest automotive suppliers in the world.
Hamid Moaref has always been fascinated by cars and the automotive industry. His family has a longstanding association with the industry and has been in the tire business for the past 35 years. Raised in Dubai, Hamid attended Capilano University in Vancouver where he graduated with a BBA in marketing before attending an intensive course in magazine publishing in 2005. He has been the publisher and chief editor of Tires & Parts magazine for the past ten years.
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