Magna International exits Russia, asset sale impacts earnings and regional operations

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Magna International, a leading Canadian supplier of automotive components, has finalized the sale of its Russia-based assets for 15 million dollars. The move was reported by Kommersant, a business publication.

Some of Magna’s Russia operations were acquired by a market-unknown entity named E-mobile. Specifically, Magna Seating Rus, Piterform, Magna St. Petersburg and Magna Seating Nizhny Novgorod transitioned to this buyer.

Piterform derives roughly 88% of its revenue from collaboration with the Hyundai factory in St. Petersburg. A second Magna Automotive Rus subsidiary, which manufactures plastic parts, also remained under Magna’s control in the region.

Magna recorded a 15 million dollar loss in its second-quarter results due to exiting Russia. The writing also reflects a larger hit of 376 million dollars in the second quarter of 2022 tied to ceasing production in Russia.

Hyundai Motor Company introduced a new generation Santa Fe.

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