Magna plans 50:50 JV with powertrain maker here
Canda-based auto parts maker Magna International, is planning a 50:50 joint venture with a domestic powertrain manufacturer.
By Lijee Philip, TNN |
MUMBAI: Canda-based auto parts maker Magna International, is planning a 50:50 joint venture with a domestic powertrain manufacturer. The finer modalities of the JV are being worked out and the company is likely to make the announcement this month, sources said.
The $24-billion auto parts maker entered into a 50:50 JV with Amtek Auto to supply powertrain systems late last year. While the JV with Amtek is purely for exports, the new JV will supply both to the domestic and export markets.
The powertrain JV will be part of Magna Powertrain, one of the nine SBUs of the autoparts maker. The domestic powertrain manufacturer, a public-listed company is an established original equipment supplier, sources said.
However, Prasen Agali, ED of Magna International refused to divulge details of the JV company. “We cannot divulge the name of the company at this moment,” he said.
The Ontario-based parts maker continues to explore JV alliances with domestic parts makers in areas like stampings, electrical mechanisms, mirrors, seats and contract manufacturing through Steyr for complete vehicles engineering and manufacturing.
The deals are expected to be closed in the next 8-10 months, sources said. Magna is currently purchasing $20-million worth of auto parts from smaller component players and expects this to double by the end of this year. Magna Donnelly, an operating group of Magna International, entered into a JV in India with Lumax Automotive Systems to manufacture interior and exterior mirrors.
Magna is increasing its focus in Russia, China and India and expects non-US markets to account for around 10% of sales by 2010, from less than its current levels of 4%. Globally with auto parts majors like Dana, Visteon and Delphi facing a tough market, Magna has been able to hold onto its marketshare, market sources said.
Magna, a diversified automotive supplier in the world, designs, develops and manufactures automotive systems, assemblies, modules and components and assembles complete vehicles, for original equipment players of cars and trucks.
The $24-billion auto parts maker entered into a 50:50 JV with Amtek Auto to supply powertrain systems late last year. While the JV with Amtek is purely for exports, the new JV will supply both to the domestic and export markets.
The powertrain JV will be part of Magna Powertrain, one of the nine SBUs of the autoparts maker. The domestic powertrain manufacturer, a public-listed company is an established original equipment supplier, sources said.
However, Prasen Agali, ED of Magna International refused to divulge details of the JV company. “We cannot divulge the name of the company at this moment,” he said.
The Ontario-based parts maker continues to explore JV alliances with domestic parts makers in areas like stampings, electrical mechanisms, mirrors, seats and contract manufacturing through Steyr for complete vehicles engineering and manufacturing.
The deals are expected to be closed in the next 8-10 months, sources said. Magna is currently purchasing $20-million worth of auto parts from smaller component players and expects this to double by the end of this year. Magna Donnelly, an operating group of Magna International, entered into a JV in India with Lumax Automotive Systems to manufacture interior and exterior mirrors.
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Magna is increasing its focus in Russia, China and India and expects non-US markets to account for around 10% of sales by 2010, from less than its current levels of 4%. Globally with auto parts majors like Dana, Visteon and Delphi facing a tough market, Magna has been able to hold onto its marketshare, market sources said.
Magna, a diversified automotive supplier in the world, designs, develops and manufactures automotive systems, assemblies, modules and components and assembles complete vehicles, for original equipment players of cars and trucks.
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