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Global auto parts giant Magna announced on April 9 that it had signed a final agreement to sell its lighting business through two separate transactions and its roof system business through a third transaction. This is an important step for Magna to divest non-core assets and further focus on high-growth, high-profit core tracks.

The sale is divided by region:

A global investment institution will acquire Magna’s lighting business in North America, South America and China, covering headlight and taillight projects.

German private equity group Mutares SE & Co. KGaA will acquire Magna’s European lighting business and take over the roof systems business in a separate transaction.

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According to data, Magna is the world's leading travel technology company and auto parts company, a Fortune 500 company and the world's third largest auto parts supplier. The group was founded in 1957 and is headquartered in Canada. Its business covers the entire industry chain such as body structure, intelligent electronics, electric drive, seating systems, vehicle engineering and manufacturing, etc. It has more than 330 manufacturing plants in 28 countries around the world, serving mainstream global vehicle manufacturers.

Magna’s lighting system and roof system businesses are both part of its Power and Vision Division. Magna’s announcement shows that their global sales in 2025 will be approximately US$1 billion and US$100 million respectively. Among them, the European lighting business’s revenue in 2025 is expected to be approximately US$235 million.

Among them, Magna has deployed more than 60 manufacturing plants and more than ten R&D centers in China, deeply empowering the electrification and intelligent upgrading of the local automobile industry, and has been deeply involved in the Chinese market for more than 30 years. For example, Magna Intelligent Lighting Co., Ltd. mainly produces core lighting products such as automobile headlights and taillights. Magna Automotive Technology Co., Ltd. focuses on auxiliary lighting fixtures such as rearview mirror turn signals, floor lights, and interior lights. In addition, there are R&D centers in Wuhan and Suzhou. Its Chinese lighting business customers cover many mainstream joint ventures and independent brands.

“The announcement underscores our determination to proactively optimize our business portfolio in line with our core principles,” said Swamy Kotagiri, CEO of Magna. Magna will continue to focus on businesses that drive long-term growth and improve margins and return targets. We are committed to ensuring a smooth transition for our employees, customers and all stakeholders. ”

This statement is highly consistent with the strategy repeatedly highlighted in Magna's 2025 Annual Report. According to the annual report, the core strategy of the company is the“ Propulsion-Agnostic Growth Strategy ”, that is, whether it is internal combustion engine, hybrid or pure electric, Magna provides scalable systems and architectures. Under this framework, resources are accelerating the concentration of highly profitable and collaborative core segments such as body exteriors and structures, seat systems, etc. At the

same time, competition in the global automotive parts industry has intensified, technological iteration has accelerated, and the profit space of traditional mechanical parts has been squeezed, while high value-added fields related to electric, intelligent, and software-defined automobiles have become the focus of the industry.

It is reported that the profit margin of the Power and Vision Division, where lighting and roofs are located, in 2025 will be significantly lower than the company's other core segments. In other words, although the lighting system has a certain revenue scale, it has given way to business lines with greater growth potential and profit margins in the group's overall profit recovery priority.

The above three transactions are expected to be completed in the second half of 2026, subject to customary closing conditions and regulatory approvals. Magna does not expect the asset sale to impact its previously released 2026 adjusted diluted earnings per share guidance.

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This transaction is a typical case of the restructuring of the European automotive supply chain. Magna focuses on high-growth core businesses, while Mutares quickly builds platform capabilities through reinforcement acquisitions, paving the way for subsequent exits.

Mutares, one of the buyers, also announced that Magna's European automotive lighting business will be taken over by Amaneos Group, a subsidiary of Mutares, becoming a transformative complement to the group's Light Mobility Solutions GmbH and achieving strategic reinforcement.

It is reported that LMS itself is a reorganization of the exterior decoration business acquired by Mutares from Magna in 2021. Therefore, this transaction is essentially the merger of Mutares' newly acquired Magna lighting business and the Magna exterior business acquired earlier within the Amaneos Group.

Mutares said that this acquisition will combine exterior modules with advanced lighting technology to create an integrated exterior system platform and strengthen the group's comprehensive capabilities. By integrating lighting systems into exterior panels, the group can enhance product differentiation and added value to bicycles, and consolidate its positioning as a one-stop supplier to OEMs.

At the same time, Mutares also signed an agreement to acquire Magna's automotive roof systems business.

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The exit of Magna and the integration of Mutares confirm that the automotive lighting industry is transforming from a single component supply model to an integrated system solution. OEMs' demand for suppliers has shifted from "providing a single product" to "providing integrated, intelligent overall solutions", which requires enterprises to have stronger system integration capabilities and cross-domain technology integration capabilities. Magna's business restructuring is just a microcosm of the changes in the auto parts industry.