On Monday, Magna International completed its sale of its interior business to Grupo Antolin, a Spanish firm that's relatively unknown outside of Spain.
That's on top of Johnson Control International getting out of the interior business, along with other automakers and suppliers, as John McElroy pointed out in a well-written column for Autoblog.
Magna's sale underscores the fact that the car-making business — and especially their interiors — isn't exactly lucrative for most suppliers.
For what it's worth, the sale helps reduce Magna's exposure to a recently volatile Canadian currency, but long-term, Magna didn't see margins improving on interiors and got out.
Instead, Magna's looking at transmissions and other automotive parts — like other suppliers — as a better source of revenue and margins for a healthier bottom line.
(His concern is shared by Sergio Marchionne, who has a few ideas about consolidation.)
Like McElroy points out, the large players in the interior business, now Grupo Antolin and Yanfeng, are relative unknowns in a business where sales are brisk and cheaper is always better.
In short, hold on to your door handles.
The post The Biggest Car Interior Makers Are Now Companies We've Never Heard Of appeared first on The Truth About Cars.
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