Currently, Magna has high exposure to the SUV segment, and this remains a positive, it said in an analysts' presentation. It added that it expects to benefit from new BMW 1 and 2 Series launches in Europe. Outside of Europe, it believes that there is scope of sales to grow in Asia.
The biggest internal opportunity for the company comes from increased vertical integration in seating. This could be done by taking more of the processes in-house.
The greatest external benefit to the company will come as car makers respond to consumer demands for reconfigurable seating. This will grow along with the growth of smart mobility such as car sharing and hail and ride.
Alongside sales growth, Magna intends to increase EBIT in the seating sector. Margins should grow from 5.5% to 5.8% in 2019 to between 5.9% and 6.8% in 2022.
The company breaks this into two sections. Between 2019 and the end of 2020, it expects to produce seats that cost less to launch, and it intends to make seats more efficiently. Offset against this, will be the cost of winning new contracts and a number of unspecified commercial settlements.
In the 2020-22 period, Magna expects a greater contribution from higher sales. The company also wants continued operational improvements to generate more equity income.
Across the company, Magna expects sales to be between $40.5 bn and $43.5 bn by 2022. This represents a CAGR of 1–4% on the estimate of between $37.8 bn and $39.8 bn estimated for 2019.
EBIT margin is projected to grow at 6.3–6.5% for 2019, and up to 8% by 2022.
Don Walker, Magna's CEO, told analysts: 'Our growth includes products tied to reduced emissions. These include hybrid dual-clutch transmissions, e-drives, battery frames, and our portfolio of lightweighting solutions. Also contributing to this growth are seating systems.'