Magna Seating acquires South American seat supplier
AURORA: Magna International Inc expects total sales for 2011 will come in between US$25.6 billion and US$27.1 billion, the company announced January 12.
Magna bases the projection on estimates that 13.3 million vehicles will be built in Western Europe and 12.9 million vehicles will be made in North America this year. That’s slightly lower than the 13.5 million units projected in Scotiabank Group’s January 2011 forecast.
Last year, Magna projected that approximately 10.3 million units would be produced in North America and 11.4 million in Europe. According to the Scotia report, North American production hit 12.2 million units in the final months of 2010.
Magna also expects to spend between $900 million and $1 billion this year on fixed assets.The company is headquartered in Aurora, Ontario and employs 92,000 people in 25 countries.
Magna CEO Don Walker said the company’s outlook reflects significant sales growth, including expansion in high-growth markets in the next few years.
The company’s growth plans are supported by Magna’s strong balance sheet, cash flow, engineering and manufacturing footprint, technologies and motivated workforce, he said.
“These factors combined leave us confident about Magna’s future,” Walker noted.
Magna Seating acquires Pabsa S.A.
Magna Seating, a unit of Magna International, has acquired automotive seat supplier Pabsa S.A. The Buenos Aires, Argentina-based company supplies complete seats, foam products, trim covers and seat structures.
In 2010, the company recorded sales of about US$110 million.
The acquisition includes two production facilities in Buenos Aires and one in Cordoba, Argentina. The new entity will operate as Magna Seating Argentina.
Magna Seating recently announced the acquisition of automotive seating supplier Resil Minas and the establishment of a manufacturing facility in the Sao Paulo area to produce seats for General Motors and Volkswagen.
“We continue to make a significant commitment to the South American automotive market and our global OEM customers,” said Joe Pittel, president of Magna Seating. “Through recent acquisitions and investment, we have strengthened our position to immediately support the global platforms of our customers.”