Magna's desire to expand deeper into the powertrain business prompted its purchase of Getrag. The company is "interested in the ability to provide a full driveline" to clients, according to IHS Automotive Senior Analyst Stephanie Brinley to Autoblog, and this merger makes that possible. Magna now controls the right divisions to go to an automaker and sell a whole package of powertrain components. Because of the pace of auto development, Brinley estimates it could be around five years before we see these integrated products.
At around 14,000 employees, Getrag has about a tenth of Magna's 139,000-person workforce, and those extra resources could be an advantage. According to Brinley, it's conceivable that the transmission maker could take advantage of innovations from Magna's other divisions. Getrag already has over 80 years of experience in the industry and currently supplies manual, automatic, and dual clutch gearboxes to automakers like BMW, Daimler, Renault, Volvo, and Ford. "I expect that the combined businesses will be even better positioned to realize opportunities being created in the powertrain segment by the need for improved fuel efficiency and reduced carbon emissions," Getrag CEO Mihir Kotecha Magna International said in the announcement.
The purchase also makes Magna an even bigger supplier in the auto industry. The company's best known division to the public is likely Magna Steyr that assembles vehicles for automakers under contract like the Mercedes-Benz G-Class and has upcoming deals to build the BMW 5 Series and Jaguar Land Rover models. "We believe that Getrag is an excellent fit in terms of product, technology, footprint, customers and people and look forward to working together to continue building on their history of innovation," Jake Hirsch, Magna Powertrain President, said about the acquisition.
AURORA, Ontario, January 4, 2016 – Magna International Inc. announced today that it has completed its acquisition of the GETRAG Group of Companies ("GETRAG"), one of the world's leading independent suppliers of automotive transmissions.
GETRAG's established product line complements Magna Powertrain's expertise in engineering and manufacturing and provides new opportunities for growth. In particular, GETRAG is a leader in the market for dual-clutch transmissions ("DCTs"), a segment which is expected to experience high growth globally over the next decade.
"Expanding our business to provide complete powertrain solutions has been a strategic priority for us," said Jake Hirsch, Magna Powertrain President. "We believe that GETRAG is an excellent fit in terms of product, technology, footprint, customers and people and look forward to working together to continue building on their history of innovation."
GETRAG brings an 80-year history in transmissions and technology leadership, offering a range of transmission systems including manual, automated-manual, dual-clutch, hybrid and other advanced systems. Beyond enhancing Magna's powertrain systems capabilities the combined product portfolio will enhance vertical integration opportunities.
"We welcome GETRAG and its approximately 14,000 dedicated employees to the Magna family of companies," said Magna CEO Don Walker. "With the completion of this acquisition, we continue to demonstrate our focus on a refined portfolio of strategic automotive product lines."
"Under Magna's ownership, GETRAG is well positioned to become even stronger," said GETRAG CEO Mihir Kotecha. "I expect that the combined businesses will be even better positioned to realize opportunities being created in the powertrain segment by the need for improved fuel efficiency and reduced carbon emissions."
About Magna International
We are a leading global automotive supplier with 305 manufacturing operations and 95 product development, engineering and sales centres in 29 countries. We have over 139,000 employees focused on delivering superior value to our customers through innovative products and processes, and World Class Manufacturing. Our product capabilities include producing body, chassis, exterior, seating, powertrain, electronic, vision, closure and roof systems and modules, as well as complete vehicle engineering and contract manufacturing. Our Common Shares trade on the Toronto Stock Exchange (MG) and the New York Stock Exchange (MGA). For further information about Magna, visit our website at www.magna.com.
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