Mercedes Parts Supplier Magna Eyeing More European Facilities

Ryan Joseph Ramos June 24, 2013


Magna International, an Ontario-based global automotive parts supplier, is eyeing more profit out of Europe by moving its factories east, in an effort to meet North American demand for Mercedes-Benz vehicles as well as other models from German manufacturers.

The original-equipment parts manufacturer is considering a number of European locations for eight proposed facilities, and these locations include Hungary, Poland, Russia, Serbia, and also Turkey. As part of an initiative to reduce labor costs, the company is also considering cutting back on its German and Belgian operations.

Magna also counts BMW and Volkswagen AG as clients.

With Mercedes-Benz posting sales growth of around 10 percent in year-to-date figures through May, compared to the same period in 2012, the automakers, along with the parts suppliers like Magna, are stepping up production to meet the increased demand.

It looks like sales for the German manufacturers are continuing to pick up in the US even as figures dwindle in Germany itself. With Mercedes-Benz leading the way in North America so far, it will only take connected companies up as well.

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