CEO Don Walker: "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.”
Canadian auto parts giant Magna International Inc. said it will realign its divisions and create four global, product segments. It plans to report quarterly sales and earnings for each unit beginning in 2018.
The changes will provide investors with increased transparency, and allow for easier comparisons with the company’s industry peers, the company based near Toronto said in a statement on Tuesday.
The four newly developed divisions include:
Body exteriors and structures, which includes the body and chassis business, exteriors, roof systems, sealing systems and fuel systems operations;
Power and vision, which includes powertrain, electronics, mirrors, lighting and closures operations;
Seating systems, which is comprised of complete seat assembly facilities and the supplies needed for seating;
Complete vehicle assembly, which includes contract manufacturing operations and complete vehicle engineering centres.
The shift to four segments is “tied to the future of mobility,” Magna said in the statement.
“Specifically, our power and vision segment has electronics and software expertise, which are critical to our growth,” Magna CEO Don Walker said in the statement. "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.”
Magna CFO Vince Galifi said with the changes in mobility, “we recognize the need to provide a higher level of transparency into Magna.”
A Magna spokesperson said the changes were made to make it easier for investors to understand what exactly the company does. The changes don't create any new management positions.
Magna shares rose 0.5 per cent in early New York Stock Exchange trading to $57.29.
The company ranks No. 3 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $48.33 billion (US$36.44 billion) in 2016 -- up more than $5.3 billion (US$4 billion) from 2015.