Magna buys German transmission giant Getrag
In a bid to boost its business in the overseas vehicle market, Aurora, Ont.-based auto parts maker Magna International Inc. is making a $2.5-billion acquisition of the Getrag Group of Companies, said to be the world’s biggest independent producer of vehicle transmissions.
Germany-based Getrag has an 80-year history in transmissions. It counts Chinese automakers Jianglin Motors Group and Dongfeng Motor Group Co. among its joint venture partners, and also has a strong relationship with many automakers such as such as Ford, BMW, Daimler, Renault, Great Wall and Volvo. Getrag is a leader in the growing market for dual-clutch transmissions (DCTs), which is expected to be one of the highest growth segments globally over the next decade.
Including joint venture locations, Getrag has approximately 13,500 employees and operates 13 manufacturing and 10 engineering centres in nine countries in North America, Europe, and Asia.
“As part of our ongoing product portfolio review, we have identified the expansion of our powertrain business as a strategic priority,” Don Walker, Magna’s CEO, said in a statement. “Getrag is an excellent fit with this strategy. Getrag is a technology leader in a product area that we believe is well-positioned to benefit from industry trends that are driving increased vehicle fuel-efficiency and reduced emissions. Getrag’s joint venture relationships also provide significant growth potential in China, the world’s largest automotive market and the fastest growing market for DCTs. Lastly, Getrag has a highly capable and experienced workforce, including deep powertrain engineering expertise.”
The transaction is expected to close near the end of 2015.