Episode 76

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Published on:

17th Feb 2025

Inside Magna’s Strategy: Winning Business Through Early Customer Collaboration

What’s the secret to securing big wins in the automotive industry? According to Guillermo Cano, Chief Customer Engineer at Magna International, it all starts with early customer collaboration. 

Instead of waiting for contracts to be awarded, Guillermo and his team invest in relationships early, working alongside customers to develop smarter solutions from the start. Sure, it’s a risk—there’s always the chance the business goes elsewhere—but the payoff is undeniable.

He tells the story of a once-hesitant customer who, after three years of open communication and problem-solving, didn’t just come around—he nominated Magna for a supplier award.

But collaboration isn’t just external—it starts inside the company. Breaking down silos, aligning engineering and R&D, and fostering teamwork are just as crucial as customer relationships. 

In an industry that moves at breakneck speed, time is either your greatest asset or your worst enemy. Getting in early means fewer late-stage design changes, fewer supply chain surprises, and, ultimately, better results for everyone.

Guillermo also dives into the power of technology in driving efficiency—from advanced CAE studies that improve production quality to AI-driven defect detection that reduces costly errors. But even the best tech is useless without strong communication, and that’s where he offers some of his biggest lessons. Technical skills might get you in the door, but the ability to listen, connect, and collaborate is what sets future leaders apart.

And in a rare moment of vulnerability, he opens up about the importance of mental health in automotive leadership—a topic often overlooked in high-pressure environments. 

He shares his personal experience with burnout and why prioritizing well-being isn’t just good for individuals but is also critical for effective leadership. At the end of the day, great results don’t come from machines; they come from people.

Themes discussed in this episode:

  • How early customer collaboration creates a strategic advantage for suppliers
  • The risks and rewards of investing in relationships before business is awarded
  • How breaking silos leads to faster innovation and better program execution
  • The power of active listening in understanding customer needs
  • How Magna leverages technology to reduce development time and improve quality
  • Why communication skills are just as important as technical expertise in supply chain leadership
  • The importance of mental health in high-pressure automotive roles

Featured on this episode:

Name: Guillermo Cano

Title: Chief Customer Engineer, Magna International

About: Guillermo is an experienced automotive engineer and leader with over 18 years in the industry, specializing in product development, R&D, and project execution. As Chief Customer Engineer at Magna International, he collaborates with key customers to develop innovative mobility solutions that shape the future of transportation. 

A firm believer in authentic leadership, Guillermo is passionate about guiding the next generation of engineers, sharing insights from his journey, and fostering a culture of innovation and mentorship.

Connect: LinkedIn


Episode Highlights:

[04:01] The Art of Getting in Early: Winning business starts long before contracts are signed. Guillermo explains why understanding customer goals, making personal connections, and keeping your promises turn early engagement into lasting partnerships.

[06:58] Breaking Silos, Building Solutions: At Magna, collaboration isn’t just talk—it’s how real progress happens. Guillermo explains how tearing down internal barriers, staying proactive with customers, and bringing the right expertise together leads to smarter solutions and stronger partnerships.

[11:25] From Skeptic to Partnership: Turning a hesitant customer into a loyal advocate takes more than just great products—it takes trust, transparency, and real teamwork. Guillermo explains how early collaboration helped turn a challenging program into a success story, earning Magna an award nomination and establishing a long-term relationship.

[13:34] The Cost of Playing It Safe: Waiting until the last minute to engage suppliers is a recipe for delays, cost overruns, and missed opportunities. Jan and Guillermo break down why Magna is making the bold choice to invest early in customer relationships—despite the risks—to drive smarter, more strategic collaborations.

[17:07] Tech That Speeds Up Success: Guillermo explains how Magna utilizes technology, from precise CAE studies and production tools, along with AI-powered quality control, to accelerate production, cut costs, and produce higher-quality parts.

[18:58] Last-Minute Chaos? No Thanks: Nothing derails a launch faster than buried requirements and last-minute surprises. Jan shares why early engagement is critical to keeping supply chain teams from scrambling and how a proactive approach can prevent costly headaches down the line.

[21:41] The Career Advice No One Gave You: Degrees and technical skills will get you started, but communication is what sets future leaders apart—Guillermo shares why mastering it early matters more than you think.

[24:34] The One Investment Leaders Can’t Ignore: Success means nothing if you’re running on empty—Guillermo makes a powerful case for prioritizing mental health in an industry that too often ignores it.


Top Quotes:

[03:21] Guillermo: “In my role, I get the opportunity to look for collaboration work with our customers, and we try to get there early because that's where great things can happen. It gives you the time to work on more creative solutions for the complex programs that we have for our industry these days. So, I'm very proud to be in this role because they get to influence our beautiful automotive industry and help our customers get to their goals. And also, for Magna, make sure that we meet our own goals and that we partner with our customers so that we're always alongside them as we launch new vehicles.”

[05:38] Guillermo: “In this industry, we tend to forget that we're not machines—we're not terminators. So, I made a mistake before when I connected with someone, and almost immediately, I jumped, and I threw 10 different projects or my company presentation, and I just buried him in the information that he might not even be interested in. So, what has worked for me is once I connect with them as a person, you have to listen—actively listen. And most of the time, they're going to give the answers themselves. They're going to tell you specifically where they are struggling, how they see that you can help them, and start that collaboration on the new future of our industry.”

[12:00] Guillermo: “I was talking with the lead from our customer, and he told me about some of the things that went wrong with their previous programs. And I was confident that with early engagement and collaboration, those issues could have been resolved. He wasn't too excited to work with us, but after three years of working in a really collaborative environment, where we had the trust, where we were open about challenges and issues, and we found a way to resolve them with a win-win mindset. After launching through very aggressive timing through COVID issues, we were able to produce parts on time with the right quality. We peeped up on time, we met the cost targets, we met the weight targets, and he was so happy and so pleased that he went and nominated us for a supplier award.”

[15:14] Guillermo: “We are making a commitment when we approach our customers to support them meet their goals. Now, I know I said this before, but when you look at our approach, we are also being strategic. We need to know what programs are strategic for us—that align with our business plans and our growth and goals. And we focus on, with our customers, on the right products, on the right programs, and it's a partnership. There is a risk, yes, that we might not get the business awarded. But like I said before, that's the way that you get time in a new program. And in my program management experience before, that was probably the most important asset that you could have.”

[22:32] Guillermo: “My advice for the new generation is to focus on your communication skills.  I spent a lot of years working on my technical skills, which are needed for our industry. I thought communication was about just not being nervous in front of people and being able to do a presentation.  If you look at all the things that we talked about today, communication is key to linking early engagement, collaboration, working with customers, working within our own organization or our industry.”

Transcript

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So, I'm really excited to be here. Looking forward to the podcast this season, bringing the listener the cutting-edge knowledge and awareness of issues that they need to navigate these waters of supply chain these days. So, again, happy to be here, I'm honored to be here, and thanks very much for the introduction.

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Once I have a good understanding, then I have to connect with the right people in that organization—people that can make this kind of opportunities happen. Because there's been that resistance in our industry to share new programs because that's also a risk when you're handling confidential information.

So, you got to find someone that believes in the benefits of early engagement and collaboration and that have seen the benefits when you're launching a new program because you want to make sure that all your effort and all your communication goes to the right person—somebody that can make things happen. Now, when you connect with that person, what has worked for me is I try to connect with them as a person. In this industry, we tend to forget that we're not machines—we're not terminators. So, I made the mistake before where I connect with someone, and almost immediately, I jump and I throw 10 different projects or my company presentation, and I just bury him in information that he might not be even interested.

So, what has worked for me is once I connect with them as a person, you have to listen—actively listen. And most of the times, they're going to give the answers themselves. They're going to tell you specifically where are they struggling, how they see that you can help them, and start that collaboration on the new future of our industry. And lastly, this is where you got to make sure that once you start with that collaboration, that you honor your commitments and you deliver. I've heard directly from our customers—they see the value; they've had experiences where they've been successful. But at the same time, they had the experience where nothing happens or we're making progress too slow. And at the end, it wastes their time, it wastes their resources, and it also wastes our own. So, once you're there, make sure that what you commit to their customer, make sure that you'll deliver, and you keep your word.

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And what makes us different in Magna is that we have many different groups that are based on specific products, and where we all collaborate together. That's where we can give them a solution at a vehicle level by leveraging all the expertise that we have within our Magna groups. For example, last year, we hosted a Magna Tech Week in September. It was in our group office, and it was a great event. We had all of our main customers coming in through the week. We showed them all of our latest processes—our latest products. And it was such a fun event because we even had test vehicles that was testing our technology, and you could see that we were really helping them get where they wanted to be.

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There is risk, yes, that we might not get the business awarded. But like you said before, that's the way that you get time in a new program. And in my program management experience before, that was probably the most important asset that you could have. Time could be your best friend, or it could be your worst enemy—and usually it's your worst enemy. You're always against time trying to launch new things. And like you said, once a design is finalized, for us to come in and try to drive changes based on our best practices or R&D technologies, it's going to be too late. And it's going to be more costly for them to implement those changes. And I've seen programs where we've had great ideas, and unfortunately, it was too late to implement them. And all of those savings are just lost, and I've seen the face of our customers that it's frustrating. So yes, there are times where we get in, we work with them, and we don't get the business awarded, but we're being very strategic to know what are the programs that we bring expertise that nobody else has. And that makes us different. And that increases our chances of securing that business and continue that partnership with them until the vehicle launches.

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In terms of how we use it to reduce the timeline, we have great correlation between our CAE studies and production tools that can minimize the time that it takes to build new production tools and new production lines. The correlation is very accurate, so that enables you to have your first parts at a greater quality level as opposed to starting from 20 percent or 30 percent from going to 100 in terms of quality—dimensionally or welding. So that saves you time and it enables you to launch programs faster. From a cost of quality perspective, because you're starting with such a higher quality as compared to not doing correlation or CAE, then you also get the benefit. You start with parts that are PPAP, right at production. You start with parts that have the right engineering level. And we also now have been using technologies like AI for the detections and the controls that have that are in our PFMEA or in our contract plans that give you information that is more reliable, that it's live, and it enables you to make decisions at the right time.

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Let's change gears just for a second here. Guillermo, we have a challenge in the industry. We have a challenge of bringing forward the next generation of leaders, the next generation of practitioners, the people that are going to roll their sleeves up and do the work. You've come a bit of a way in your journey as have some of us here. So, what is your advice for that next generation growing up into the industry, just coming out of college or trade school? What are a couple of pieces of advice you would lend to the listener in that case?

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So I love what you're saying. And after that, I always reflect on that, like yeah—every time there's a problem, typically something wasn't communicated properly, and that's what was the source of the issue. So I love that. That's great.

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And let's be perfectly honest here—you can't build relationships, build trust, redesign processes with your customer unless you're okay. You've got to be comfortable in your own head and your own skin. So forget all these changes that we got to make in this industry. You got to take care of yourself first. There's a reason why they tell you on a plane to put the oxygen mask on yourself first. And you are exactly right.

Thank you so much for sharing everything that you've shared with us on the podcast today. It has been a true pleasure having you on the show. Thank you, Guillermo.

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About the Podcast

Auto Supply Chain Prophets
because supply chain is where the money is!
We really can’t predict the future … because nobody can. What we can do, though, is help auto manufacturers recognize, prepare for, and profit from whatever comes next.
Auto Supply Chain Prophets gives you timely and relevant insights and best practices from industry leaders.