Auto supplier Magna International Inc. will spin off two big chunks of the company into super groups that will be led by its top North American and European executives.
The sweeping reorganization will place Don Walker, now CEO of the company, in charge of a new group to be known as Magna Interiors.
The other group, Magna Steyr, will house vehicle assembly, powertrain and hydroforming operations. It will be headed by Siegfried Wolf, president of Magna Europe.
Shares of both groups will be sold to the public through stock offerings.
Belinda Stronach, 34, a Magna executive vice president and board member, will become vice chairwoman and CEO of the holding company, in Aurora, Ontario. She is the daughter of Magna founder and chairman Frank Stronach. She also is Walker's former wife.
Magna posted 2000 sales of $10.5 billion for the year that ended Dec. 31. ranks Magna as the world's ninth-largest supplier of original equipment parts. Of its five divisions, four will be listed publicly.
The pending split of Magna Interiors and Magna Steyr would follow the Magna spinoffs of Decoma International Inc. and Tesma International Inc. The parent company will retain a majority of stock in the new companies, as it has with Tesma and Decoma.
Magna believes these giant new groups will be more agile, have greater access to outside capital and be more likely to invest in independent acquisitions.
The $3 billion interiors group under Walker will be made up of Magna's Atoma Closure Systems, Magna Seating Systems and Magna Interior Systems group.
The new group is designed to be a systems integrator and supplier of complete seats, and instrument and trim panels.
Magna Interiors still will be smaller than its chief rivals, Lear Corp. and Johnson Controls Inc.