Magna International Inc. has forged two deals to consolidate its sales of plastic bumper fascias both in the U.S. and European automotive markets. In Europe, the Markham, Ontario-based firm will expand its manufacturing of decorative exterior body systems by buying Pebra GmbH Paul Braun, a Ger-man automotive parts supplier, for C$31 million (US$22.6 million).
Separately, Magna's Decoma Exterior Systems Group, based in Concord, Ontario, has formed a joint venture with General Motors Corp., to make and paint bumper covers at GM's Lake Orion, Mich., assembly plant, according to Gerry Holmes, spokesman for GM's North American Operations. That facility houses GM's midsized/luxury car group.
Decoma will own 70 percent of that outfit, to be called Orion Paint and Plastics, once operations begin in 1998. Under the long-term agreement, Decoma will supply about C$100 million (US$73.1 million) worth of bump-er covers a year to the carmaker, according to a news release.
Graham Orr, Magna's vice president of corporate development, could not be reached for comment on either deal. But, the Toronto Star reported May 15 that Orion is hiring the carmaker's workers with union cooperation, and will inherit their labor contract. In the same story, the Star reported Pebra's auto parts business has struggled in recent years, and is in receivership. Pebra and Magna, now in due diligence, expect their deal to close June 30.
The German firm makes plastic bumpers, body side moldings and panels, windshield moldings and trim, as well as metal exterior components and systems, at four undisclosed European plants, for carmakers including Mercedes Benz, Audi, BMW, and Ford.
Next year Pebra expects sales of about C$250 million (US$182.6 million). It employs more than 1,000.
