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AUTOMOTIVE: Magna (MGCN A3/A-/NR): Tariff Exposure

AUTOMOTIVE
CanadaBulletCredit BulletsNorth America
  • There are 2 Canadian corporate issuers in the Bloomberg EUR Agg, Couche-Tard and Magna.
  • According to its website Magna has 50 plants in Canada, 33 in Mexico and 58 in the US; crudely, 58% of NA production sites are not in the US. There are only 7 auto factories in Canada so most of that production is presumably exported. It has 102 plants in Europe and 88 in Asia (mainly China).
  • 48% of 2023 revenue came from NA, 38% from Europe and 12% from APAC. European presence is roughly proportional to sales vis-à-vis NA, while APAC is overrepresented in production. We can assume it is exporting from China to other regions.
  • Back of the envelope, if 35% of NA sales originate from Canada up to 17% of revenue could be impacted by that tariff (we assume less than 15%). Some China-originated production would also be impacted.
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  • There are 2 Canadian corporate issuers in the Bloomberg EUR Agg, Couche-Tard and Magna.
  • According to its website Magna has 50 plants in Canada, 33 in Mexico and 58 in the US; crudely, 58% of NA production sites are not in the US. There are only 7 auto factories in Canada so most of that production is presumably exported. It has 102 plants in Europe and 88 in Asia (mainly China).
  • 48% of 2023 revenue came from NA, 38% from Europe and 12% from APAC. European presence is roughly proportional to sales vis-à-vis NA, while APAC is overrepresented in production. We can assume it is exporting from China to other regions.
  • Back of the envelope, if 35% of NA sales originate from Canada up to 17% of revenue could be impacted by that tariff (we assume less than 15%). Some China-originated production would also be impacted.