The Globe and Mail reports in its Friday, Jan. 22, edition that Magna International's acquisition
of transmission maker
Getrag will help it expand
more rapidly in China, which is
the key growth market the parts
giant is targeting, says chief executive
officer Don Walker.
The Globe's Greg Keenan writes that short-term economic gyrations
have not caused Magna to
change its view that China represents
the best growth opportunity
among all global vehicle
markets. Mr. Walker says, "I think we can leverage
Getrag's growth there and we can
also leverage the capabilities
Getrag has." Magna's
purchase of Getrag closed
earlier this month.
The $2.7-billion
purchase of Getrag is the biggest
acquisition yet for Magna. It is now a maker of
complete transmissions in addition
to the components for transmissions
that its Magna
Powertrain division already manufactures.
Mr. Walker says, "China is our biggest growth priority
from a geographic standpoint
outside our core markets."
Getrag has three plants of its
own in China, a joint venture and
a regional office.
Magna expects to have 38
plants and joint-venture facilities
operating in China by 2018, compared
with 15 in 2010.
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