Magna to become key transmission player following Getrag purchase image

Magna International’s deal worth almost two billion dollars to acquire German transmission manufacturer Getrag takes the Canadian giant on the path towards gearbox supremacy.

The company will be able to supply transmissions from the smallest cars to the largest vans and to anything in between, with the agreement, expected to be finalized before the start of next year, making Magna a top transmission rival to ZF Friedrichshafen, Japan’s Aisin and several other less known transmission suppliers. Getrag, a privately owned German company, had revenue of $3.6 billion two years ago and builds more than 22 transmissions used worldwide in models from the British Mini to Ford’s Transit cargo van. With operations in China as well, Getrag produces five- and six-speed manual transmissions as well as wet and dry dual-clutch automatics. It has also took time to develop a pair of two-speed transmissions specifically used in range-extended gasoline-electric hybrids, such as the Chevrolet Volt or the BMW i3. The Getrag ybrid transmissions, called Extended Drive, are not yet manufactured.

Magna could also potentially profit from teaming Getrag’s transmissions with Magna’s all-wheel-drive systems, with the latter thus delivering almost the entire vehicle propulsion system, save for the engine. Industry watchers believe Getrag’s hybrid transmissions and other technology for electric autos were the main lure, with an eye on long-term strategy for the Canadian company. Magna, the second largest auto supplier in the world, had revenue of $36.33 billion in 2013 and mostly took home profit from body, chassis, powertrain, interior and electronic component units.

Via Automotive News Europe