Magna International has forecast North American light vehicle production in 2014 at 16.7m units with output of 19.1m in Europe.
The supplier expects total sales this year of US$28.6bn-$29.9bn split $16.8bn-$17.4bn in North America, $9.5bn-$9.9bn in Europe and $2.3bn-$2.6bn elsewhere.
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Magna is also forecasting contract vehicle assembly (such as BMW’s Mini Countryman and Paceman models built at Magna Steyr in Austria) to contribute $2.6bn-$2.9bn taking the total 2014 sales forecast to $33.8bn-$35.5bn. Operating margin is forecast in the “mid 6% range”.
The company plans a capital spend of around $1.4bn this year.
CEO Don Walker said: “Our outlook indicates our continued progress in expanding our business in high growth regions, particularly in Asia. In addition, our outlook reflects our commitment to improving operating results in Europe including through ongoing restructuring, implementing operational improvements and exercising discipline in quoting new business. This, together with ongoing strong performance in North America, is expected to result in continued improvement in our consolidated operating margin in the coming years.”
Looking further out, Magna expects 2016 sales about $3.6 billion higher than 2014, based on assumed full year 2016 light vehicle production volumes of approximately 17.7m units in North America and 20.9m in Europe.
It expects its sales increase to be split 45% in North America, 25% in Europe and 30% elsewhere.
