GUELPH, ONTARIO — Linamar Corp. Executive Chair Linda Hasenfratz stated that tariffs are a short-term problem and that the vast majority of the company's business faces no tariffs, despite recent market volatility. Linamar Corp. shares have climbed approximately 27% this year in Toronto.

Hasenfratz addressed the trade environment during an interview. "Tariffs are very much a short-term problem," she said. She noted that products accounting for more than 60% of Linamar’s earnings are sold tariff-free.

The threatened 50% tariffs exclude auto parts, which form a portion of the manufacturer's output. Auto parts compliant with the existing trade deal between the US, Canada, and Mexico are exempt from the 25% tariff applied to assembled vehicles. "The vast majority of our business, there’s absolutely no tariff," she said.

The executive chair also discussed how trade tensions have created strategic opportunities for the company. "The tariff situation is also adding stress to an already stressed supply base," Hasenfratz said during a conference call. She explained that this pressure has led to acquisition opportunities as competitors face distress.

"This is leading to acquisition opportunities for us, as you’ve seen us act on, and the pipeline of distressed companies just continues to grow," she said. Linamar Corp. has made three acquisitions in recent years: two in Germany and one in the US. The company acquired these entities because they were in distress due to industry upheaval.

Financial results for the most recent quarter presented a mixed picture for the manufacturer. Linamar Corp. reported second-quarter earnings that fell short of analysts’ estimates. Following the release of its second-quarter earnings, Linamar Corp. stock experienced a one-day dip.

Despite the earnings miss, Linamar Corp. sales reached a record in the most recent quarter. The company's industrial lift sales are increasing, driven by demand from builders of artificial intelligence data centers in the US who are purchasing Linamar Corp.'s battery-powered industrial lifts. Linamar Corp. manufactures narrower, battery-powered industrial lifts. Conversely, Linamar Corp.'s agricultural equipment business is currently experiencing a downturn. Non-auto businesses, including heavy agricultural equipment and industrial lifts, account for nearly 40% of Linamar’s earnings. The company is exploring expansion into defense, robotics, and power generation.

Linda Hasenfratz's net worth is $1.8 billion. This figure represents a recovery from previous periods of trade uncertainty. Linda Hasenfratz's net worth previously dipped to approximately $800 million after the first round of US tariffs on autos was announced.

Accumulated dividends account for about 13% of Linda Hasenfratz and her family’s net worth. Hasenfratz is 60 years old and has served on Linamar's Board of Directors since 1998. Her tenure included roles as President from 1999 to 2004 and COO from 1997 to 1999 prior to becoming CEO in 2002. Linda Hasenfratz transitioned from CEO to Executive Chair of Linamar Corporation in August 2024, retaining oversight of strategic direction while delegating operational leadership to Jim Jarrell.

Why It Matters

The exclusion of auto parts from threatened tariffs provides stability for Linamar Corp. which relies heavily on cross-border trade under the existing agreement between the US, Canada, and Mexico. This trade deal remains in place for another 10 years, offering a predictable framework for the majority of the company's revenue. The ability to acquire distressed competitors allows Linamar to consolidate its position in the mobility and industrial sectors during periods of market stress. The company's diversification into industrial lifts and potential expansion into defense and robotics reduces reliance on traditional automotive cycles.

Timeline

Canada signed an agreement with the US in 1965 that removed tariffs on cars and auto parts traded between the two nations. Linamar Corp. was founded in 1966. The North American Free Trade Agreement was implemented in 1994.

Linda Hasenfratz became chief executive officer of Linamar Corp. in 2002. For the third quarter of its 2018 fiscal year, which ended 30 June 2018, Cabot Corp posted net income attributable to the company of US$88 million on net sales of $854 million.

What's New

Later reporting confirmed that Linamar Corporation was converted to a public corporation in 1986, following its founding in 1966 as a privately held Ontario company by Frank Hasenfratz. Additional details established that Linda Hasenfratz transitioned from CEO to Executive Chair of Linamar Corporation in August 2024, retaining oversight of strategic direction while delegating operational leadership to Jim Jarrell. It was also noted that the name 'Linamar' was derived from the first names of Frank Hasenfratz's two daughters and his wife, reflecting the family's foundational role in the company's creation. Further background indicated that Linda Hasenfratz has served on Linamar's Board of Directors since 1998, with her tenure including roles as President (1999-2004) and COO (1997-1999) prior to becoming CEO in 2002. Reports also identified Linda Hasenfratz as a Canadian businesswoman, the president, chairman, and CEO of Linamar.