Magna International Inc. (MGA), a maker of vehicle parts, is getting more expensive due to strong investor demands. For several brands, Magna is interested in the electrification of road transport and will become the manufacturing site for the production of the main electric car platform.
The first and only model of the Ocean electric crossover for Fisker Inc (FSR) will be produced by Magna. The rollout is expected to be in the fourth quarter of 2022. This is the first detailed project in which the assembler of the whole car would assume the role of Magna.
The companies have joined forces to create a full range of ADAS features unique from the industry and a group of software packages supported by the architecture of scalable domain controllers. But there are other similarly significant contracts with the firm.
A joint venture with LG, called LG Magna e-Powertrain, was formed by Magna. It will build parts, including electric wheel drive, for electric vehicles. The company would provide a large option for car manufactures, up to ready-made power plants that can be used on multiple chassis. It should be remembered that LG is now engaged in the production of the Chevrolet Bolt and Jaguar I-PACE electric car parts.
Therefore, two powerful players are combined and Magna investors can become winners of the combination. Moreover, the transfer of a major automotive spare parts producer to the manufacture of components for electric transport is a significant indicator. This reflects a reorientation of the automobile industry and the final launch of the age of petrol and diesel vehicles.
Magna International Inc. (MGA) jumped 3.46 percent to $75.34 in the Wednesday session while Fisker Inc. (FSR) remained stable at a bit rise of 0.83% to $17.10. MGA stock gained 38% over the past year and currently has a market capitalization of nearly $23 billion.