Magna: It's our job to help customers balance between low cost and high quality

• Source: Gasgoo
• [08:23 August 07 2009]
• Comments

In our Fluid Pressure Products, we have electric water pump, electric oil pump which all need now for hybrids to get a better fuel efficiency.

In our Stamping Group, they indeed do not look highly sophisticated but the point is the process of how they are made. We make some of the parts in cold forming, for instance clutch housing for Automatic - , Powershift - & CVT transmissions. And we do single - & two piece flex plate, which means we make a flex plate for a car out of one piece, usually it’s out of two pieces.

Gasgoo.com: From your previous introduction, is there any product or technology you plan to introduce to China?

Peter Seidl: We plan to introduce and produce mass balancing system with or without an integrated oilpump for Diesel - Gasoline engines , stampings and some cold forming devices, PTUs, rear drive modules and transfer cases in our plant in Changzhou. We are already producing in China different kind of oil pumps, aluminum die castings and single piece flex plates at our Changzhou plant. In addition we provide a full range of Engineering services for both , Commercial – as well as Passenger Vehicles through our ESSI and ECS ( Engineering Center STEYR ) Group .

Because we see China, especially in the field of modern technology as well as all wheel drive, four wheel drive system, is growing rapidly. Even though the market in all wheel drive, four wheel drive system is still small, then if your look over the next few years, the market is going to go up nicely.

Gasgoo.com: How to expand the application of some technologies or products (like Magna's superb 4WD/AWD) used in the high-end vehicle models to a broader range of mass models?

Peter Seidl: Just now I gave a few examples because these are all well known brands. But we are also doing R&D for Fiat Panda including rear drive driving coupling. We are also developing products for the best cost countries. We are going to introduce a system which has got very good value for money and will be applied in vehicles that are cost efficient. This system is going to be developed in our engineering centers in China and India.

Gasgoo.com: Many global auto-parts companies have said that China's local customers are relatively sensitive to the price and very demanding about the technology and product. How will you balance that so as to meet their demands?

Peter Seidl: I think the main point is local engineering, local manufacturing and local purchasing. Because we are not making all of the parts ourselves, what we make inhouse is actually a rather small part, so we have to purchase the parts in the local market, and we have to have smart engineering solution in order to meet the customers demand.

We understand the demands very well because we have been in this market for quite a lot of years. We are a learning group. Being with customers everyday one learns a lot of things.

One other very important point is quality, especially for OEMs who are going to export their products abroad, where the quality requirements are very high. Therefore when we are suggestion a solution, you can find this is the top choice. Sometimes even if you may think it’s a little bit costly, you must consider the whole chain. When someone says this is a little bit different from something in the past, he does not take into account the aspect of quality. You will learn very fast if you go abroad to Europe or America, that if you are not having the top quality, it will cost you a lot of money afterwards and you will never sell your products again.