Magna posts second consecutive quarterly loss
Aurora, Ont.-based Magna International Inc., the biggest auto parts supplier in North America, reported a second st...
March 9, 2009 by Canadian Plastics
Aurora, Ont.-based Magna International Inc., the biggest auto parts supplier in North America, reported a second straight loss in its fourth quarter.
The company reported a loss of $148 million, and a slump in U.S. auto sales cut into Magna’s quarterly revenue by 29 per cent to $4.84 billion. The company relies on the Dertroit Three for a bulk of its business.
“We are facing one of the most difficult automotive environments in decades,” said executive Siegfried Wolf. The company said that it would close a transmission plant in Syracuse, N.Y., cutting 1,400 jobs.
Late last year, the company announced that it will close two plants in the Greater Toronto Area (GTA) for the company’s Exterion division.
The Exterion division is a part of Magna’s Decoma International, and manufactures exterior painted plastic parts such as fascias, fenders, body panels, grilles, rocker panels and decorative trim, primarily for North American OEMs.
Work from the two facilities in Aurora and Newmarket will be transferred over to other sites in June. Additionally, the company said that it would provide severance packages based on years of experience, and try to place the plants’ employees at other Decoma facilities.
Currently, the company is hoping to expand its plastics and interiors business outside N.A. with the purchase of Cadence Innovation’s European operations by its Decoma division.