The Globe and Mail reports in its Saturday edition that Magna International spent most of 2024 in the repair shop. The Globe's Tim Shufelt writes that start with its exposure to the electric-vehicle space, which became a problem when automakers started scaling back EV production in the face of weakening demand. Light vehicle production also slumped globally in 2024, as consumers contended with high car prices and high interest rates. The next to start blinking on Magna's dash was the tariff light. Donald Trump's threat to impose a 25-per-cent tariff on Canadian imports would be devastating for companies such as Magna, whose parts cross the border up to eight times before ending up in a completed vehicle. Finally, there is Magna's association with its founder, Frank Stronach, who was charged with a string of sex offences spanning nearly five decades. While he has not been involved with Magna for years, it has been difficult for the company to distance itself when its headquarters sit on Stronach Boulevard in Aurora, Ont. If there is a version of CAA for troubled companies, Magna could use some roadside assistance.
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