DETROIT -- One of Mark Hogan's first orders of business as president of Magna International Inc. will be to expand in Asia Pacific and Latin America.
"All the OEMs are expanding their presence in Asia Pacific, specifically China, so it's important that Magna becomes a strong supplier in China," Hogan said last week. "We'll also look at Japan and Korea. For a supplier to be effective, you've really got to be in the country, particularly for just-in-time."
Magna has six manufacturing plants and one r&d center in China.
In Latin America, he'll work on Mexico and Brazil. Magna has 11 plants in Mexico and three in South America.
Hogan leaves GM to join the healthy megasupplier on Sept. 1. Magna ranks No. 4 on the Automotive News list of the top 150 suppliers to North America with North American original-equipment automotive parts sales of $9.10 billion in 2003, up from $8.45 billion in 2002.
But like other suppliers, Magna has its challenges. Hogan lists these concerns:
GM is Magna's second-largest customer, behind DaimlerChrysler AG. Hogan says his more than 30 years with GM will help.
"I have a close working knowledge of the challenges from an OEM standpoint, particularly on product," he said. "I think it's going to be an aid to Magna as we work with OEM partners to make them more competitive."
Hogan also has a good relationship with Toyota Motor Corp. He was GM's liaison to Toyota while he worked at NUMMI in the late 1980s, and he maintained that relationship.
"Magna has pretty good business with Toyota, and there are opportunities to expand that," Hogan said.
Magna headquarters is in Aurora, Ontario. Hogan will have an office there but will work in Troy, Mich., to be near the Big 3. He will continue to live in Michigan.
Hogan replaces Belinda Stronach, daughter of Magna founder Frank Stronach. She resigned in January to pursue a career in Canadian politics.
Magna comprises Intier Automotive Inc., Cosma International, Magna Donnelly, Decoma International Inc., Tesma International Inc., Magna Drivetrain and Magna Steyr.