TORONTO – Automakers are taking a “calm approach” in responding to ongoing geopolitical headwinds to their cross-border supply chain, the chief executive of Magna International Inc. says.
There haven’t been any substantive supply changes in response to ongoing tariffs levied by the United States, CEO Swamy Kotagiri told analysts during an earnings conference call on Friday.
“Our industry is a long cycle. What we are producing today has been decided three or four years ago,” he said.
However, Kotagiri said Magna is ready to serve its customers — Ford, Stellantis, General Motors, among other automakers — in the U.S. if more of their production moves south of the border a few years down the line.
“We have a footprint in the U.S. and we’ll look at how we can optimize working with the customers,” he said. “But this is a long-term thinking process rather than a reaction to what’s happening now and today.”
Magna has been continuing to increase its compliance with the Canada-U.S.-Mexico Agreement to help mitigate tariff impacts. The agreement, however, is up for review next year.
When asked about the company being redomiciled in the U.S., Kotagiri said that’s not on the table.
“We have not considered it,” he said. “Magna is a Canadian company.”
The auto parts maker reported US$305 million in net income attributable to the company during the third quarter, down from US$484 million in the same quarter last year.
The company, which keeps its books in U.S. dollars, said the profit amounted to US$1.08 per diluted share for the quarter ended Sept. 30 compared with US$1.68 per diluted share a year earlier.
Magna also upped its sales outlook for 2025 as demand for light vehicle production remains steady.
The company is now expecting sales for the year to total between US$41.1 billion and US$42.1 billion compared with earlier guidance for between US$40.4 billion and US$42 billion.
“While the current environment makes forecasting more challenging than usual, we remain focused on what we can control and continue to adapt to evolving conditions,” the CEO said.
Kotagiri said the improved forecast is in part because fourth-quarter margins are expected to go up as commercial and net tariff recoveries from automakers come in.
The company raised its North American production outlook to 15 million units, up by about 300,000 units. It also signed on a Chinese company for its complete vehicle assembly in Europe.
“This is a significant milestone,” Kotagiri said. “It marks the first time a Chinese automaker has chosen Magna’s complete vehicle operations in Austria to serve the European market.”
In August, the auto parts maker lowered its estimated annualized tariff-related cost projections for the year to US$200 million, from its earlier estimate of US$250 million.
Sales for the quarter totalled US$10.46 billion, up from US$10.28 billion in the same quarter last year.
On an adjusted basis, it earned US$1.33 per diluted share in its most recent quarter, up from an adjusted profit of US$1.28 per diluted share a year earlier.
Adjusted net income attributable to the company is expected to be between US$1.45 billion and US$1.55 billion compared with earlier guidance for between US$1.35 billion and US$1.55 billion.
This report by The Canadian Press was first published Oct. 31, 2025.
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