Magna International Inc. has announced a realignment of its management structure along product lines. The company says the shift better aligns its global operations with its long-term strategy tied to the future of mobility. In addition, it is designed to enhance synergies across product groups and better aligns with the company’s customers.
With these management changes, it is also introducing new financial reporting segments beginning in 2018. The changes to its reporting segments will provide investors with increased transparency, and allow for easier comparisons with its industry peers. Beginning with the first quarter of 2018, the company will report sales, Adjusted EBIT and other items based on four global, product-oriented operating segments:
- Body Exteriors & Structures includes the company’s body and chassis business (Cosma), exteriors, roof systems, sealing systems and fuel systems operations;
- Power & Vision includes the company’s powertrain, electronics, mirrors, lighting and closures operations;
- Seating Systems is comprised of the company’s complete seat assembly facilities and its foam, trim, structures and mechanisms operations; and
- Complete Vehicles is comprised of its contract manufacturing operations as well as its complete vehicle engineering centers (Magna Steyr).
“The changes we are making to our management structure will enhance our ability to innovate, by fostering greater collaboration and sharing of expertise across the company. Specifically, our Power & Vision segment has electronics and software expertise, which are critical to our growth. As we address industry trends, including electrification, autonomy and new mobility, we will continue to build on the competitive advantage of our robust portfolio and deep systems knowledge, allowing us to provide our customers with more complete solutions,” said Don Walker, Magna’s CEO.
“With the changes in mobility, we recognize the need to provide a higher level of transparency into Magna. The new segmentation better aligns our reporting with our peers and will allow the financial community to gain a better understanding of our unique business model,” added Vince Galifi, Magna’s chief financial officer.
