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Magna opens new engineering center
By Shao Shijie |
September 19, 2011, Monday
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MAGNA Steyr, the product engineering and manufacturing unit of Magna International, opened a new engineering center in Shanghai this month to cash in on China's rapidly growing auto market.
The relocated Shanghai Engineering Center in Jiading District covers 6,000 square meters and accommodates a newly built prototype shop that allows parts and equipment testing for the development of complete prototype vehicles.
At full capacity, the new engineering center can hold 500 employees and can build up to eight prototype vehicles per week.
Klaus Badenhausen, vice president of engineering at Magna Steyr, said the new center reflected China's growing importance.
"Our intention is to be closer to our customers," he said.
Global auto parts makers are following car makers by boosting their presence in China, the world's largest auto market, which had growth of 30 percent last year. Having local engineering centers is becoming more crucial in lowering costs and developing products that meet local demand.
Magna Steyr began operations in China in 2004. It now runs four engineering centers including one in Wuhan, capital city of Hubei Province, which focuses on industrial services. Another one is a collaboration with FAW Group in Changchun, capital city of Jilin Province.
Although the Chinese car market slowed down this year after the expiration of government incentives, James Tobin, chief marketing officer and president of Magna Japan and Korea, said the company still sees a lot of growth opportunity in China and will continue to increase investment.
Magna Steyr will open its first manufacturing facility with a fuel systems plant in Changchun later this year.
Tobin expects its business to grow in China as the company's engineering capability will provide solutions at a cost-effective price, which will appeal to local customers.
"We continue to see that China will be leading in total production for the foreseeable future," he said. "We'll continue to serve global customers and we will also focus more on self-branded vehicles that Chinese OEMs will continue to bring to the market."
As a contract manufacturer, Magna Steyr has produced 2.5 million vehicles in 21 different models and it also helped complete vehicle development for models such as the Mini Cooper Countryman.
The relocated Shanghai Engineering Center in Jiading District covers 6,000 square meters and accommodates a newly built prototype shop that allows parts and equipment testing for the development of complete prototype vehicles.
At full capacity, the new engineering center can hold 500 employees and can build up to eight prototype vehicles per week.
Klaus Badenhausen, vice president of engineering at Magna Steyr, said the new center reflected China's growing importance.
"Our intention is to be closer to our customers," he said.
Global auto parts makers are following car makers by boosting their presence in China, the world's largest auto market, which had growth of 30 percent last year. Having local engineering centers is becoming more crucial in lowering costs and developing products that meet local demand.
Magna Steyr began operations in China in 2004. It now runs four engineering centers including one in Wuhan, capital city of Hubei Province, which focuses on industrial services. Another one is a collaboration with FAW Group in Changchun, capital city of Jilin Province.
Although the Chinese car market slowed down this year after the expiration of government incentives, James Tobin, chief marketing officer and president of Magna Japan and Korea, said the company still sees a lot of growth opportunity in China and will continue to increase investment.
Magna Steyr will open its first manufacturing facility with a fuel systems plant in Changchun later this year.
Tobin expects its business to grow in China as the company's engineering capability will provide solutions at a cost-effective price, which will appeal to local customers.
"We continue to see that China will be leading in total production for the foreseeable future," he said. "We'll continue to serve global customers and we will also focus more on self-branded vehicles that Chinese OEMs will continue to bring to the market."
As a contract manufacturer, Magna Steyr has produced 2.5 million vehicles in 21 different models and it also helped complete vehicle development for models such as the Mini Cooper Countryman.
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