German Takeover

Magna Steps Up a Gear

Getrag Magna gearbox transmissions Source DPA 46886187
To Magna, German gear maker Getrag might be worth its weight in gold.
  • Why it matters

    Why it matters

    The takeover of German transmission maker Getrag will likely intensify competition among the top five car parts makers and could speed up development of more fuel-efficient cars.

  • Facts

    Facts

    • Canadian-Austrian car parts maker Magna is paying €1.75 billion for family-owned Getrag, which operates joint ventures with Ford, Jiangling and Dongfeng.
    • Magna sees transmissions as a priority because powertrains will be key to meeting tighter fuel economy targets.
    • Germany’s ZF Friedrichshafen bought U.S. car parts maker TRW for $12.4 billion in May.
  • Audio

    Audio

  • Pdf

Canadian-Austrian auto parts maker Magna International said on Thursday it will acquire German transmissions specialist Getrag for €1.75 billion, or $1.91 billion, plus €700 million in debt and pension liabilities.

The acquisition, which followed weeks of rumors that a deal was in the works, would provide family-owned Getrag with the necessary resources to invest in electric car technology, said its chief executive, Mihir Kotecha.

“Electric mobility will shape the industry. This requires high investments by automakers and suppliers,” Mr. Kotecha said. He added that large, financially strong suppliers like Magna needed to expand their global presence.

Want to keep reading?

Subscribe now or log in to read our coverage of Europe’s leading economy.