Automotive News Canada - November 2020 - v2 - 14

* N O V E M B E R 2020

A Canadian company,
With Walker, Magna spread its
'and
it
will
stay
so'
wings and a whole industry soared
CONTINUED FROM PA GE 13

Does retirement
mean he'll vanish
from autos, or is
there a 'godfather
position' for him to
provide guidance?
By JOHN IRWIN

AUTOMOTIVE NEWS CANADA

CANADA'S SUPPLY CHAIN
gained respect in an increasingly complex and globalized
landscape, thanks in large
part to Don Walker, say his
colleagues and competitors.
As CEO of Magna
International Inc., Walker
focused on expansion, which
helped give suppliers credibility and fueled their growth,
said Flavio Volpe, president of the Automotive Parts
Manufacturers' Association.
Magna employs 152,000 people in 27 countries, according
to its website.
The company's explosive
growth under Walker's leadership proved to be invaluable
for other
Canadian
suppliers,
said Volpe,
who called
him a friend
and mentor.
" For
many other
Canadian
companies,
that was
Volpe: " I don't
the guidthink he's going
anywhere. I
ing block
think he feels
to get others into dif- a certain
ferent mar- ownership
kets. That's over the future
prosperity of
Don's
the [supplier]
vision. "
sector. "
Volpe
FILE PHOTO
said
Walker's
retirement at the end of 2020
will mark an " end of an era. "
During his time as CEO, the
Aurora, Ont.-based company expanded to become the
world's third-largest auto

parts supplier by annual sales.
" I think we all knew sooner
or later [Walker's retirement]
was coming. The only surprise
might have been the date, "
Volpe said.

WALKER SEES THE 'BIG PICTURE'
Rob Wildeboer, chairman of parts supplier and
Magna competitor Martinrea
International Inc., said Walker
is a " loyal Canadian " who
" always saw the big picture. "
Martinrea is the third-largest Canada-based supplier
by annual sales to automakers in 2019, according to the
Automotive News Data Center.
Wildeboer said Walker
helped to persuade policymakers in Canada of the importance of creating and retaining auto manufacturing
jobs domestically, especially
during the Great Recession
that drove Chrysler and
General Motors into bankruptcy more than a decade ago.
" In 2008, there were a lot of
people in this country, including in Ontario, asking why we
should support a smokestack
industry, " said Wildeboer.
" There was a public-perception issue we were fighting
against. But today, a lot of people are saying it's important to
make things and it's important
to make things here. We see the
benefits of it when in a pandemic, when a number of companies including automotive companies jumped in to help make
ventilators and masks and [personal protective equipment]. "
Walker serves as chairman
of the Canadian Automotive
Partnership Council (CAPC),
comprised of auto executives
and leaders from government,
labour and retail to address
issues of concern to the auto
industry.
Wildeboer, a CAPC member, said he has worked with
Walker on a host of issues,
most recently on those related to the pandemic. He said he
and Walker helped to come up
with industry wide safety protocols that allowed for a safe
return to manufacturing amid

the pandemic.
" Both our companies and
ourselves as individuals have
a very singular focus on keeping this industry healthy
and having this industry
be healthy in Ontario and
Canada, " Wildeboer said.
While Walker is stepping
away from Magna, he suggested that he would likely remain
in the auto industry in some
capacity. He told Automotive
News
Canada
that he
would be
" looking at
some new
technologies " and
would work
on projects he is
passionate
Wildeboer:
about.
Walker " saw
But, he
stressed he the big picture "
and helped sell
would not
policymakers on
be seekthe importance
ing anothof keeping autoer operatmanufacturing
ing role or jobs in Canada.
a spot on a F I L E P H O T O
public company's board.
A longtime critic of what
he sees as the country's overly
burdensome red tape, Walker
said he has ideas for the
" future prosperity " of Canada
and its auto industry.
" The parts manufacturers
can actually be quite healthy
but will be healthier if our end
customers [assembly plants]
are located in Canada or...
Michigan. "
Volpe said he could see
Walker taking on a " godfather
position " for the Canadian
auto industry.
" I don't think he's going anywhere, " Volpe said. " I think he
feels a certain ownership over
the future prosperity of the sector. The funny thing about Don
is, here's someone who runs
one of the top three supplier
companies in the world, but
if I call him, he'll pick up the
phone. I don't think that's going
to change. " - ANC

Walker, CEO from 1994
until 2001 and again from
2005 to the present, oversaw
the company's development
into the world's third-largest
automotive parts supplier,
with almost US $40 billion
in revenue in 2019 and more
than 150,000 employees.
Walker, a Canadian, has
been a longtime critic of federal and Ontario government
policies on issues ranging
from red tape to the minimum wage. These policies,
he said, combined to make
Canada less competitive than
other jurisdictions.
While Kotagiri said the
USMCA helps on that front,
Magna would continue to
look at ways to solidify its
Canadian footprint, made up
of 48 manufacturing plants
and 10 sites for engineering,
product development or sales.
" Magna has been a
Canadian company for the
last 60 years, and it will stay
so, " he said.

CHANGING ROLE, TIMES
Kotagiri will take over at
a time of significant change
in the North American auto
industry. Magna is navigating an evolving trade landscape and an industry hard
hit by the COVID-19 pandemic, which forced automakers to shut down assembly in
North America and Europe
earlier this year.
As well, massive investments by automakers and
suppliers in electrification
and autonomous-vehicle
development are upending
the sector.
Kotagiri's background
in engineering and R&D
make him well-suited to lead
Magna during this new era,
Walker said.
" He's had experience and
very good success in the technical side, the business side,
the operations side, the engineering side, and he's been
recently our president and
working on strategy with all
the groups.
" He's got a very good
background, understands the

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culture and is well-respected and liked in the company,
and I think he's going to do a
great job here. "
As chief technical officer
- a role he held since 2013
before being named president in January - Kotagiri
has overseen the supplier's
push into areas including
electrification, autonomy
and connectivity.
He also managed the company's product strategy
" both at a corporate level and
in conjunction with Magna's
product groups, " the supplier
said in a news release.
In a statement announcing
the management changes,
Walker said Kotagiri played
an " integral role in advancing the company's position
in the changing mobility
landscape and encouraging
a startup mindset to solve
problems with solutions outside our industry. "
Kotagiri, a 25-year veteran of the industry, grew up
in India before moving to
the United States to pursue a
master's degree in mechanical engineering at Oklahoma
State University. He joined
Magna in 1999 as a product
engineer after four years at
General Motors.
He also served in various other technology roles,
including as head of Magna's
electronics, powertrain and
" power and vision " units.
His previous responsibilities with Magna included
several engineering and R&D
positions.
Kotagiri said he would
lean on his background with
the company in his new role
and consult with Walker if
needed.
" Unless you have your
feet under the desk, there
are some things you'll have
to learn while you're on the
job, and that I will, " Kotagiri
said.
" But the nice thing is that
I can turn to Don and say,
'What have you done or what
am I missing?' So that's a
great feeling. " - ANC
- Alexa St. John contributed
to this report.

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2020-06-03 7:17 PM

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Automotive News Canada - November 2020 - v2

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