With so much of the Canadian investment story focused on the country’s resource riches, it might be a surprise to some that motor vehicles and parts are its second-largest export category after energy products.

In 2014, for example, the export of motor vehicles and parts totaled CAD74.5 billion, accounting for 14.1% of total exports.

Of course, that’s still dwarfed by the export of energy products, which totaled CAD128.7 billion last year, or 24.3% of total exports. But that’s to be expected.

Regardless, Canada’s automotive industry is substantial. And naturally, its performance is closely tied to the economy of its neighbor to the south.

As the U.S. economy continues its resurgence, the auto industry has rebounded along with it. Last year, for instance, U.S. light motor vehicle sales hit 16.4 million, the highest number since prior to the onset of the Global Financial Crisis.

This year, U.S. auto sales are projected to rise to 16.8 million, which would put them back at levels that haven’t been seen since the heady growth that occurred in the middle of the last decade.

Meanwhile, Canadian new motor vehicle sales hit an all-time high last year of 1.89 million units. That’s expected to decline slightly this year and next, though results are still forecast to be quite strong compared to prior years.

Canada’s auto industry is largely dominated by foreign automakers, such as Ford, General Motors and Chrysler. As a result, there are few purely Canadian plays to capitalize on this trend.

But that doesn’t mean Canada doesn’t boast a world beater of its own. It’s just that you might not have heard of it.

Similar to the polite reserve that’s characteristic of many Canadians (if not in reality, then at least for comedy purposes), this company is content to operate under the radar while letting the major automakers capture all the glory.

As the largest auto-parts supplier in North America and the third-largest in the world, Magna International (TSX: MG, NYSE: MGA) does just about everything but make cars under its own brand.

Its broadly diversified design and manufacturing capabilities cover both the machinery that you don’t see, such as chassis, powertrains and electronics, and the aesthetics that you do see, including exterior molding, painting and assembly.

And all those parts are in big demand. In addition to strong vehicle sales in both the U.S. and Canada, last year motor vehicle engines and parts were one of Canada’s strongest-growing export categories, up 15.3% year over year, to CAD19.6 billion.

That pace was well ahead of the 10.3% growth Canada experienced for its overall exports. And the total dollar value of exports in this area was the highest its been since prior to the Great Recession.

The U.S., which absorbs about three-quarters of Canada’s exports, was the destination for most of the machinery, parts and equipment.

Magna derives about a quarter of its revenue from the U.S. and nearly a fifth of its revenue from Canada. So it will benefit from the continuing strength of the North American auto market.

But just like its wide array of product categories, Magna is also diversified geographically. The firm has manufacturing and engineering operations located in 28 countries on four different continents, including South America, Europe and Asia.

Given such extensive product lines, Magna has a decentralized operating structure, and it encourages a culture of entrepreneurialism among its managers at each division.

Magna’s high level of diversification on both the product and geographic front should help the company adapt to industry trends, which as Bloomberg notes include pressure from automakers to cut costs by working with suppliers capable of producing complex bundles of parts and components.

Even so, Magna has not escaped criticism from some analysts for being overly diversified and risking poor capital-allocation decisions. To that end, the company has undertaken two divestments so far this year that should help streamline operations.

In February, Magna announced the sale of its battery-pack business to Samsung SDI Co. Ltd. The terms of the deal were not disclosed.

Then last week, Magna announced an agreement to sell its interiors operations (not including its seating business) to the Spanish auto interiors manufacturer Grupo Antolin, which is hoping to one day dominate this highly competitive niche.

Although the interiors division generated USD2.4 billion last year (about 7% of total revenue), Magna has decided to part with the low-margin business for just USD525 million. The transaction is expected to close in the third quarter.

In a statement accompanying the announcement, Magna CEO Don Walker said, “This transaction is consistent with our strategy of refining our product portfolio to focus on certain key areas of the vehicle.”

Analysts believe selling the operation is a smart strategic move that should allow the company to focus more on higher-margin areas. “This has been a really challenging area for the industry, not just Magna,” Cannacord Genuity analyst David Tyerman told the Financial Post. “They have had hiccups in this area from time to time that have had negative impacts on their profitability and share price.”

Nevertheless, it’s not entirely clear why the purchase price is just a fraction of the revenue the division generated last year. According to the FP, analysts with BMO Capital Markets had valued the operations at USD800 million to USD1.2 billion.

The company doesn’t offer segment reporting based on product divisions. Instead, segments are broken down by geography. So aside from the revenue figure provided by the company in the announcement, we don’t know to what extent the interiors business was eroding profits.

In its annual report, however, Magna observed that one of the contributing factors to the USD1.34 billion year-over-year increase (up 4.4%) in the cost of goods sold was “unanticipated costs at certain interiors facilities.” In past annual reports, it’s noted that inefficiencies at its interiors operations have weighed on financial results.

Given the gulf between the estimated value of the business and the sale price, this is clearly a situation of “let the buyer beware.”

Fortunately, the proceeds should be put to good use. The company says it intends to use its growing cash hoard to invest internally for future growth, finance future acquisitions, and return cash to shareholders.

Magna’s stock has been on an absolute tear since the Global Financial Crisis, generating a staggering total return of 33.9% annually in local currency terms over the past five years.