By

Maninder Kaur (N01162242)

Jasdeep Kaur (N01168574)
Bilal Feroz (N01186370)
Rutu Patel (N01164165)

MAGNA INDUSTRY

Magna International Inc. is a Canadian worldwide car supplier headquartered

in Aurora, Ontario, Canada. In 2014 it was the biggest car parts maker in
North America by offers of unique hardware parts, and one of Canada's
biggest companies.
Its product capabilities include producing body, chassis, exterior,
seating, powertrain, electronic, vision, closure, and roof systems and
modules, as well as vehicle engineering and contract manufacturing. The
Company has over 290 manufacturing operations and over 80 product
development, engineering and sales centers in approximately 30 countries.
The Company's operating unit, Cosma International, is an automotive
supplier that provides a range of body, chassis and engineering solutions.
The Company produces a range of body-in-white solutions.
Magna makes car parts that are essentially supplied to General Motors,
Ford Motor Company, and Chrysler LLC. In expansion to the Big 3 U.S.
automakers, Magna's real clients incorporate Tesla Motors, Volkswagen,
BMW and Toyota. In Europe, Magna Steyr holds contracts for the gathering
of the Peugeot RCZ and Mini Countryman.
Magna has roughly 124,000 representatives in 287 assembling
operations and 81 item advancement, designing and deals focuses in 29
countries. Magna works under a corporate constitution which calls for
appropriation of benefits to workers and shareholders. The terms of this
agreement are "reasonable endeavor" as indicated by Frank Stronach,
organization organizer.

HISTORICAL DEVELOPMENT

The organization was established in 1957 by Frank Stronach as "Multimatic"

and "Multimatic Motorsports". This organization converged with Magna
Electronics in 1969, and the consolidated organization got to be Magna
International in 1973.
Magna obtained 80% of New Venture Gear, once a joint endeavor
between General Motors and Chrysler, in September 2004, and consolidated
it into Magna Powertrain. It expected full possession in 2007.
In

April

2008,

Magna's

completely

claimed

backup,

Cosma

International, reported that they were purchasing the Ogihara America Corp.
stamping plant in Birmingham, Alabama, that makes parts for MercedesBenz and other automakers.
In May 2015, the organization declared that it would build up a 105section of land package of area it possessed on the southeast corner of King
Road and Jane Street in King City to construct its new corporate central
station.
In July 2015, Magna purchased the German organization Getrag, had
some

expertise

in

transmission

representatives, for 1.9 billion dollars.

frameworks

with

around

13,500

CONTRIBUTION TO CANADIAN ECONOMY

A key traditional source of manufacturing strength for Canada has been the
auto sector, representing 8.4 per cent of Canadian manufacturing gross
domestic product (GDP) and 1.1 per cent of total GDP in 2011
1. Employment in the sector stood at 105,673 or 0.6 per cent of total
Canadian employment.
2. Analysts usually divide the sector into two categories: assembly and
parts. Canada is home to five assemblers: Chrysler, Toyota, General
Motors, Ford and Honda.
Assemblers are in turn, supplied by a large number of part suppliers,
including three leading firms: Linamar Corporation, Magna International and
Martinrea International.
Canadian auto manufacturing is part of the integrated auto North
American (NA) sector that includes the United States (for analytical purposes
usually divided into North and South) and Mexico. The company had sales of
more than $30 billion in 2012,

and earnings

before interest,

tax,

depreciation and amortization (EBITDA) of $2.5 billion.

Magna employs almost 120,000 people in 313 manufacturing facilities
and 88 product development, engineering and sales centres located in 29
countries. International sales accounted for 79 per cent of total production
and 46 of Magnas 266 manufacturing facilities are located in Canada. Of its
roughly 120,000 employees, almost 100,000 work outside of Canada

SWOT ANALYSIS

STRENGHT

1. Parts supplier to the huge 3 car firms General Motors, Ford Motor
Company and Chrysler
2. Incomprehensible item portfolio that can thoroughly supply parts for a
whole vehicle.
3. Solid circulation B2B organize and long haul contracts with three of the
world's greatest car firms.
4. Economies of scale in production brings down cost.
5. Global presence in approx 30 countries.
6. B2B company well known among automobile manufacturers.
7. Over 130,000 people are employed with the company.

WEAKNESSES

1. Broad product offering makes centering troublesome and costly. It is not

the by and large best in its distinctive product offerings.
2. Emergence of competing auto spares companies, each focusing on less
products but making those products better.

OPPORTUNITIES

1. Can showcase itself as a B2C organization and supply extras and fittings
to buyers.
2. Growing automobile segment in developing countries creates a lot of
demand.

THREATS

1. High labor costs in Japan driving up overall costs.

2. High loan fees constraining capital uses.
3. Danger of contenders showing signs of improvement parts.

RECOMMODATIONS

"Long Hours need a regular 8 hr day" (in 22 reviews)

"Tough, harsh environment often impacting work life balance without
any notice"

ADVICE TO MANAGEMENT

Keep communication active.

Salary not that competitive to market

Manufacturing funds all programs, as opposed to engineering, which

leaves

little,

or

no

room

for

innovation

- More focus is placed on modification of existing products, as opposed

to

development/innovation

of

new

ones

- Work 90% of the time feels repetitive and unrewarding

ADVICE TO MANAGEMENT

Favoritism and placing cost savings and personal annul bonuses ahead
of employees' interests is detrimental to retaining skilled professionals
(or perusing new talent) and overall company's future growth.
- Commit to you promises

New management restructuring has made Deco a revolving door.

People are let go weekly and less and less full time staff are brought
on board. Constant of retraining of Temps and contractors creates
slower

sloppier

work.

Terrible

communication

between

shifts.

Christmas party is out of budget all of a sudden. etc. etc. etc...

ADVICE TO MANAGEMENT

Rotate shifts for either management or staff to fix communication

issues.

REFERENCES
INTRODUCTION AND HISTORICAL DEVELOPMENT

https://en.wikipedia.org/wiki/Magna_International
TSE:MG: 48.44 -0.19 (-0.39%) -Magna International Inc. (n.d.). Retrieved
from http://www.google.ca/finance?cid=695403

CONTRIBUTION TO CANADIAN ECONOMY

http://www.ivey.uwo.ca/cmsmedia/1066974/3-fom-canadianautoparts.pdf
SWOT ANALYSIS

http://www.mbaskool.com/brandguide/automobiles/13191-magnainternational.html

RECOMMODATIONS

Magna

International

Reviews.

(n.d.).

Retrieved

https://www.glassdoor.ca/Reviews/Magna-International-ReviewsE5767.htm?countryRedirect=true

from