Magna International reportedly plans to double sales to Japanese car makers within three years as it aims to expand its Asian operations.
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Magna, which generates much of its business from the Big Three US automakers, told Reuters revenues from Japanese car manufacturers – almost all of it for vehicles sold outside Japan – now made up just 6% of its total revenues.
“Doubling (that ratio) from 6% to 12% is something we could probably achieve within two to three years,” company chief Mark Hogan told the news agency. “Our presence now (in Asia) is low so we expect to see tremendous growth in our Asia-Pacific business,” he reportedly said while in Tokyo to discuss the company’s plans in the region.
Hogan told Reuters he expected Magna to move up in the world ranking of autoparts suppliers in 2004, after finishing behind Delphi, Robert Bosch, Denso, Visteon and Lear Corp. last year.
Hogan reportedly noted that much of the growth in the past decade had occurred with its North American and European partners, but that future growth depended mainly on Asia.
In addition to grabbing more business with Japanese car manufacturers, Magna would expand its manufacturing capabilities in China and Korea, while looking for opportunities in the fast-growing Southeast Asian and Indian markets, Hogan told Reuters.
Hogan reportedly said there was still plenty of opportunity left in China, where he predicted the fast pace of car sales growth would resume in the middle of 2005 after a contraction in the past few months.
Hogan told Reuters the number of Magna’s manufacturing plants in China would grow “significantly” from six now.
Magna also said it has appointed two former Japanese car executives to senior posts in a bid to forge closer relationships with Japanese automakers, Reuters added.
