Deal adds powertrain products to global automotive products portfolio
- 13 plants, 10 engineering centers
- Dual-clutch transmissions
- “Significant” growth potential in China
Getrag has about 13,500 employees in nine countries, producing transmissions for BMW, Daimler AG, Ferrari, Mitsubishi, Porsche, Renault, Volkswagen, and Volvo.
Magna International has struck a deal to buy Germany’s Getrag Group of Companies for an estimated $2 billion, adding an important manufacturer of powertrain systems to its portfolio of automotive manufacturing companies. It’s a deal that signals further consolidation automotive supply chain, following the recent purchase of TRW by ZF Corp., and the announced deal for BorgWarner Inc. to buy Remy Internal.
Ontario-based Magna produces numerous different automotive parts, including companies producing body, chassis, interior, exterior, seating, powertrain, electronic, vision, closure and roof systems and modules.
Getrag’s specialty is automotive transmission systems, including manual, “automated manual,” dual-clutch, hybrid and other systems. “We believe the architecture of Getrag's product line is well-positioned to support current and future automotive powertrain configurations,” according to Magna, which noted in particular Getrag’s dual-clutch transmissions, for which it forecasts growing global demand in the near future.
Getrag has about 13,500 employees at 13 plants and 10 engineering centers in nine countries. It has a presence in the European, Asian, and North American automotive supply chains, producing transmissions for BMW, Daimler AG, Ferrari, Mitsubishi, Porsche, Renault, Volkswagen, and Volvo.
It also joint-venture manufacturing businesses with Ford Motor Co. (Getrag Ford Transmissions), Jiangling Motors Corp. (Getrag (Jiangxi) Transmission Co. Ltd.), and Dongfeng Motor Corp. (Dongfeng Getrag Transmission.)
"As part of our ongoing product portfolio review, we have identified the expansion of our powertrain business as a strategic priority,” according to Magna CEO Don Walker. “Getrag is an excellent fit with this strategy.” He called Getrag a technology leader in a product area that Magna expects will benefit from industry trends driving increased vehicle fuel-efficiency and reduced emissions.
Walker further cited Getrag's joint ventures as an opportunity for “significant growth potential in China,” in particular because of its dual-clutch technologies.
Magna said its offer, subject to working capital and other adjustments, is for 100% of Getrag’s shares, and that the deal would close near the end of this year, assuming all regulatory clearances are secured.