Magma Group
Automotive
Business Solutions
Magma helps automotive businesses achieve sustainable competitive advantage by creating and implementing ideas which can be transformational in their effects. We do this using the unique combination
of knowledge, experience, information and insight which we call Automotive Intelligence.
Magma has a track record of delivering radical, game-changing business concepts and services. Our focus on the automotive industry is driven by a winning mindset and original thinking. Fast on our feet, we appreciate the commercial imperative of delivering clearly measureable results through the application of cutting edge technology and process.
Our Thinking
Big ideas from Automotive Intelligence
Globally connected, we strive to look beyond the edge of the automotive horizon. Our research, allied to our intimate knowledge of the automotive industry, helps us formulate informed, insightful future scenarios. These in turn allow us to develop the innovative business solutions for which Magma is known.
Our Thinking >>
Our Services
Transformational concepts
and solutions
Our services deliver innovative, practical solutions to difficult or intractable automotive industry problems. We make technology work. In designing robust and efficient processes we place our faith in outstanding human talent unfettered by conventional thinking.
Our Solutions >>
Our People
Committed, qualified and experienced
Magma’s key players represent one of the most knowledgeable and experienced teams of people working in the 21st century automotive industry. Passionate about the business, receptive to fresh thinking and dynamic in operating technique, they offer a uniquely valuable resource for automotive clients world-wide.
Our People >>
Magma Group
Smart thinking connecting specialist business units
Magma Group is composed of multiple specialised business units that serve the needs of automotive industry clients world-wide. The company was formed in 2005 in response to what we foresaw as the impending dynamic evolution of the global automotive industry. We are proud of our hard-won reputation for creating transformational business solutions that have had, and continue to have, a significant impact on the automotive industry.
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Our Thinking
Our current case studies:
LDV Acquisition Case Study
'A technology led acquisition to transform business results'
Background
In mid 2005 Magma met with Oleg Deripaska and members of his private equity vehicle Basic Element and its daughter businesses, Russian Machines and Gaz Group.
A broad range of potential topics were discussed and one particular issue facing Gaz Group was highlighted. The need for Gaz to replace its ageing Gazelle product range. Gazelle represented the bulk of Gaz Group's sales but was under increasing competitive pressure from newer western market entrants that were being imported
to Russia in ever-increasing volumes. Gaz needed a solution - fast.
Solution
Magma formed a strategy-working group to define potential options for Gaz Group.
An analysis of market dynamics demonstrated that Gaz did not have sufficient time
to complete an all-new product development cycle for their principal product range before excessive erosion of their market share.
Magma's solution was to find a way to get GAZ competitive product in short cycle. Magma reviewed the product availability and competitiveness together
with the willingness to enter into various forms of venture for all medium commercial vehicle manufacturers. The opportunity to use the recently launched LDV Maxus Van range stood out as the best solution and appeared feasible.
Magma reviewed
the options with the client and achieved approval to make an approach. Magma made its initial approach in December 2005 and discovered that LDV were already
in discussions with Sun Capital Partners regarding a sale and purchase.
The LDV acquisition represented a launch transaction for the newly formed European arm of Sun Capital and was timed to complete quickly. At first sight it looked like
the opportunity had disappeared. Magma looked at the Sun acquisition and the likely cycle of the business during the first months of 2006 and formed a hypothesis that Sun would face a pinch point in April 2006. Magma then engaged with Sun and started monthly review meetings. At the same time, Magma started a deep product review
and tested due diligence of the Maxus van range versus its leading competition using Magma's Ultramotive Product Development Division, in order to shorten any potential acquisition timeline. At the April meeting Sun indicated they were prepared to discuss some form of transaction.
Magma detailed out an acquisition plan for the client and suggested N M Rothschild
as Investment Banking advisors. Magma completed a full due diligence
of the businesses, operations and personnel. In parallel Magma developed
a full business plan for the target and a pro forma business analysis and ten-year plan for the combined enterprise, which NMR then used to develop the acquisition financials.
A key feature of the plan was the creation of an export plan for the Maxus for the Russian Federation, followed by a localisation plan involving development also of a new generation of vehicles for the Gaz group leveraging the Maxus technology.
In July, having completed successful due diligence, Magma and NMR presented
the acquisition plan to the GAZ Group Board of Directors and achieved approval.
GAZ Group also retained Magma personnel to develop an International Division
for the company and to handle the post acquisition Integration.
Result
GAZ Group acquired LDV in August 2006 through its newly established GAZ International. Magma set about the post acquisition Integration and development
of LDV. In 2007 LDV returned to profit, was awarded 'Transport Company of the Year'
in competition with names such as Virgin Atlantic and was awarded 'Supplier of the Year' by the Post Office.
Maxus was launched at the Moscow Motor Show in 2007
and exports to Russia commenced in the first half of 2008. A Russian CEO was appointed early 2008 to complete the integration into the Light Truck Division
of Gaz Group.
"GAZ Group president Erik Eberhardson said: "We are very excited about this transaction, which represents an important strategic move, expanding our market presence and bringing market leading management talent into the group. We believe that this deal will act as a catalyst for further international growth."
Mark Milner, industrial editor, The Guardian, Tuesday 1 August 2006
Magma People Case Study
'A tailored resourcing solution for a client undergoing transformational change.'
Background
Magma People was retained by the executive director, Global Sales for an OEM which had recently changed ownership and was going through a period of dynamic restructuring and organisational change.
The sale and separation process from previous ownership had left a number
of 'leadership gaps' within the company, whilst the new owners had developed a very different strategy for the business going forward.
The challenge our client faced therefore, was getting the business operational again
as rapidly as possible, plugging leadership gaps with experienced executives who could quickly turn strategy into action with the minimum of executive oversight, whilst simultaneously building bench strength in leadership talent for the longer term.
Solution
Key areas of immediate need were the creation of an integrated European Fleet Strategy including a programme to communicate whole life costs and improve residual values, as well as development and roll-out of a pan-European used car programme.
Permanent recruitment needs included country managing directors and senior positions across both retail and fleet sales.
Magma People worked closely with the executive director, Global Sales and the executive director, Personnel to develop a clear understanding of both the future business strategy and the organisational culture of the business. This enabled us
to effectively screen both interim and permanent candidates to ensure they had not only the professional skills and experience required for individual roles but would also be an appropriate cultural and personality fit with the organisation and the existing management team.
Result
Magma People was able to deliver a team of highly experienced interim consultants within ten days of briefing. With extensive knowledge and capability in specific business areas, the team was effective from day one, putting in place new systems and processes and delivering measurable improvements in operational effectiveness over a six month period.
At the same time Magma People used its industry knowledge and network to execute
a number of executive search projects, delivering high calibre candidates within an accelerated timeframe.
"Magma People's combination of solid automotive search and recruitment capabilities, together with a broad interim resource base, has enabled us to implement strategy into operational action significantly faster than would be the norm if the classic recruitment approach had been taken."
Executive Director, Global Sales
Our People
Dr. Martin Leach
Chairman - Magma Group
Martin founded Magma in 2005 after serving the global automotive industry in several prominent roles, including chairman GAZ International, CEO Maserati, president & COO Ford Europe and MD Mazda Motor Corp.
He has a broad knowledge of the entire industry supply chain and first-hand experience of collaboration with almost all manufacturers in the U.S., Japan, Europe and Asia. His experience covers globalisation, turnarounds, repositioning, growth activities, mergers, post acquisition integration, cross cultural integration, divestment, partnerships, joint ventures, motorsport, downturn planning and downturn survival. An acknowledged expert in product creation Martin was Automotive News Product Development executive of the year in 2002 and Automobile magazines Man of the year in 2004.
Martin leads the Magma Strategy team in offering the whole range of key M&A services, including management team evaluation, target identification and valuation and optimisation strategies.
A fellow of the Institute of Mechanical Engineers, educated at Duke University and INSEAD he was awarded a Doctor of Science from University of Hertfordshire in 2000.
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Ed Sabisky
Chief Executive - Magma Group
Ed began his business career in automotive finance with General Motors where he worked for over twenty years in progressively senior roles, including finance director of Vauxhall Motors.
During his time at GM, Ed led the negotiating team that saved GM approximately $6 billion in U.S. Government taxes, securing the UK industry’s first three year labour agreement. As managing director, he drove the complete turnaround of Masterlease Europe.
A specialist in industrial relations, Ed has contributed significantly to a number of major acquisitions such as the takeover of Hughes Aircraft Corporation by GM.
Ed joined Magma Group in 2005, initially as chief financial officer before moving on to become chief executive.
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Mark Hall
General Counsel & Company Secretary - Magma Group
Mark has worked as a lawyer within the automotive industry for over 16 years. He spent the first 10 years with General Motors where he gained an in-depth understanding of motor manufacturing, sales, marketing and distribution. During his time at GM, Mark received three ‘Chairman’s Awards’ for outstanding work.
He was the sole legal adviser on the industry's first offering of a mass market vehicle through the Internet, and represented GM in the motor industry and EU forums on the development of the Automotive Block Exemption.
He co-authored the GM pan-European dealer agreement and drafted and presented the GM Competition Law compliance programme.
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Sandy Virk
Group Business Director
Sandy has over ten years experience in the automotive industry in sales, marketing and marketing communications.
During her time at McCann Erickson, Sandy supported
the marketing directors of Daimler Chrysler Retail and BMW in creating and implementing their communications and marketing strategies.
Leaving McCann to become sales and marketing manager at Ferrari GB Ltd, she was responsible for maintaining
the reputation of one of the world's great luxury marques.
Sandy moved on to Leo Burnett where she was in charge
of the Fiat UK marketing account before taking over
as marketing director at The Luxury Channel.
Sandy brings extensive through the line marketing communications experience to Magma Group where
she is responsible for leading the implementation
of marketing strategies that drive significant sales
on behalf of our clients.
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Chris Donkin
Chief Executive - Magma People
Chris, who leads Magma People, has over 20 years experience of international executive search and recruitment, business development and marketing communications.
During that time he has worked in Asia-Pacific, continental Europe and the UK, holding senior management positions at both regional and global level.
He has worked extensively with clients across all sectors of the automotive industry, from component and vehicle manufacturing through distribution and retailing to financial services, contract hire and motorsports.
Under Chris' direction, Magma People helps companies attract, develop and retain leadership talent at all levels.
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Jim Olexa
Chief Executive - autoXP
An expert in the car rental and fleet businesses, Jim - a native of Detroit - has over 20 years experience in the international automotive industry.
As regional manager for Enterprise Rent-a-Car, Jim helped launch the company’s first operation outside North America when it set up in the UK. He went on to launch the company’s German operation, serving the company for a total of 14 years.
After a spell as MD of QEK Global, where he led a significant financial turnaround, Jim took over as CEO of autoXP where he has overseen the rebranding and re-launch of the business under Magma ownership.
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Mike Bonner
Director - Magma Services
Mike has worked in the automotive industry for more than 30 years, predominantly in the fleet and business sectors.
Before joining Magma Mike served as a member of General Motors global fleet strategy board, and is an honorary member of the Association of Car Fleet Operators and The Institute of Car Fleet Management. He was chairman of an FN50 leasing company.
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Keith Hawes
Director - Magma Services
Keith's automotive career spans over 35 years, spent mainly in fleet and corporate sales. Starting out at Ford Motor Company, Keith worked in management for Ford of Britain and Ford of Europe sales and marketing.
He then joined Renault UK where he became Regional Sales Director and later Director of Franchising and Dealer Development. He was subsequently appointed to the UK Board as Director, Fleet, Commercial Vehicle Sales and Re-marketing Operations - a position he held for 12 years. During this time Keith took Renault to third position in the Fleet and LCV market.
Prior to his arrival at Magma Keith was a key member of The Renault International Fleet Forum in assisting implementation of best practice globally.
Keith came to Magma in 2010.
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Graham Ede
Director - Automotive Intelligence
Graham is a specialist in automotive retail and OEM programmes with a background in CRM. After working in sales at Porsche and AFN, the Porsche-owned network, Graham went on to pioneer CRM in the UK with Callback UK, the call centre operation focused on the automotive industry.
As CEO of the Moon River Group, Graham worked with many UK OEMs across lead support, fleet management and marketing communications campaigns.
At Magma, Graham is leading the development of new client business services based around research and data-driven consumer insights.
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Simon Fretwell
Project Director - Automotive Intelligence
Simon began his career at Rover Group where he worked for five years in sales, marketing and planning. Following successful spells at Nissan Motor and BMW's software division, Softlab AG, he joined ION Group.
During his four years as sales and marketing director working with clients including Harley-Davidson, Audi, Proton and Nissan, Simon increased the company's turnover by 120 per cent.
Simon is skilled at specifying and delivering new customer and prospect data capture methodologies. At Magma, Simon is responsible for implementing integrated CRM and marketing programmes for major UK clients.
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Joe Rider
Director - Ignite
Joe has been at the forefront of the digital agency community since he co-established one of London's first digital shops, Zone UK In 1992.
He went on to create ground-breaking work in the video game industry with his company Intrepid CE which was subsequently acquired by Microsoft.
Joe has been fanatical about car design and all things automotive since his student days, when as a design graduate he won a national automotive design competition.
A co-founder and CCO of the award-winning digital agency, Duke & Earl, Joe has created a number of highly original and very successful campaigns for companies including Ford, Microsoft and Intel.
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Darren Ponsford
Project Director - Magma Metro
With 20 years experience as both a client and an agency director, Darren has extensive knowledge of multi-channel integrated marketing in the automotive world.
After early years spent as marketing manager at Mazda Cars UK, Darren joined Wunderman London, initially as automotive business director before becoming global director for development and operations. He went on to become marketing head of Suzuki GB and later director at Blueview Group Plc.
Darren brings wide-ranging technical, commercial and marketing skills to Magma Metro.
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Magma Group
Global automotive strategic solutions
Experience of over 200 product programmes, in all functions and processes from OEM to retail, has made Magma Strategy a uniquely qualified consultancy practice. We provide board and executive level representation offering both strategic and operational support.
Whether we are dealing with an M&A opportunity or solving an intractable issue; advising on a complex management problem or delivering a breakthrough concept, Magma Strategy provides a bespoke and tailored solution for every client. Our Automotive M&A support provides a broad spectrum of integrated services which cover the chronology of any deal, from target identification to post acquisition integration. They include, in addition to other more arcane skills, the analysis and interpretation of historic results, the provision and analysis of competitive intelligence and experienced, informed negotiation support.
Core services
- Strategy consulting and advisory services
- Merger and acquisition support
- High level industry business briefings
- Non-executive directorships
Global expertise in automotive experts
Globally networked, we provide leadership talent to some of the most progressive companies in the automotive industry. We believe that ultimate competitive advantage lies in the quality of leadership at all levels within an organisation. To this end we deliver executive search and selection, senior interim management, consulting resource and leadership evaluation and development services to help companies find, develop and retain the industry’s future leaders.
Core services
- International executive search and selection
- Interim managers and contract consultants
- Corporate leadership advisory services (inc. evaluation, development, coaching and mentoring)
- Individual leadership advisory services (inc. career planning, CV preparation)
Intelligent automotive sales solutions
With over 120 years of combined industry knowledge and experience amongst its leadership team, Magma Services offers best practice strategic advice and operational support to the automotive industry Europe-wide. Our embedded corporate, fleet and B2B sales teams, whether managed by us or by our client can provide hands-on fleet sales, contract hire, network development and remarketing support, leading to measurably increased sales.
Core services
- Managed B-to-B sales team outsourcing
- Multi-market/pan-European sales team management
- Individual specialist staff placement contracts
- Dealer talent pool development
Next generation automotive e-tailing
Magma’s breakthrough concept has changed the rules of car retailing forever. Only Magma could have had the vision to use the power of the web to create an interactive site that allows customers to choose, design, test drive and purchase a new car without leaving home. Completely hassle-free, the concept puts the consumer in charge, freed from the pressure of car salesmen or the need to visit showrooms.
Core services
- Customer prospecting (on- and off-line)
- Personal delivery test drive fulfilment
- Full on-line transaction capability
- Customer data management and CRM
- Aftersales/Customer Lifecycle Management
Leading edge automotive marketing communications
Ignite fulfils a need expressed by the automotive industry for a specialist, integrated communications agency with leading digital abilities and world class creative excellence. Ignite is different because we focus exclusively on the automotive industry. Many of our directors have senior experience within the sector, bringing a unique pool of specialist knowledge and capability together.
Ignite is different because we offer a strategic understanding of automotive brand, product, customer and channel. Ignite joins up the process of identifying and engaging customers with the process of acquiring and retaining them. It’s an integrated ethos with a simple but fundamental goal; to maximise your return on marketing investment. We call this approach Automotive Intelligence.
Core services
- Digital strategic services
- Internal and stakeholder communications
- Digital customer engagement and direct customer acquisition
- CRM and Social CRM
- Effectiveness auditing and evaluation
Delivering experiences that sell cars
Our core business is that of vehicle based experiential marketing. For over twenty years we have understood that delivering a car to a client’s prospect is a part of the sales process experience rather than just another vehicle movement. Over that period we have led the industry by innovation and example. Today our wide-ranging skills encompass all of the physical, technical and support activities to successfully manage Corporate Demonstrator Fleets, Press Fleets, Marketing Fleets, VIP Chauffeuring, automotive events, and most recently supporting new cars sales, service, maintenance and repairs
Core services
- On brand fleet demonstration activity
- Press and marketing fleet management
- Vehicle preparation, delivery and collection
- Routine servicing and product recalls
- Customer vehicle damage management
Industry and consumer insight
Automotive Intelligence is Magma’s unique way of working. It results from deep industry knowledge and experience married to hard, quantitative data and a unique way of interpreting information. It provides us with insights that deliver ground-breaking strategies. We are enabled by Automotive Intelligence. It is our signature. It is also where we assemble industry leading consumer and industry insight utilising our ground breaking Magma Data Engine technology platform.
Get in Touch
Magma Group Limited
Address:
15 Stratton Street / Mayfair / London /
W1J 8LQ / United Kingdom
Telephone:
+44 (0)20 3036 0317
Email:
info@magmagroup.co
Registered Office: 1 Georges Square, Bristol, BS1 6BP, Registered in England No. 5438025
© 2011
© 2011