Canadian auto parts company Magna International Inc. is planning to expand its global manufacturing capacity to North America as it focuses on electric vehicle production.
The Aurora, Ont.-based auto supplier plans to become an industry leader in North America while aiming for carbon neutrality by 2030, Magna executives said Tuesday during the company investor call.
"We have indicated many times over the years, we are interested in establishing vehicle manufacturing in North America," said CEO Seetarama (Swamy) Kotagiri.
The company will partner with more overseas startups, including the recently announced collaboration with Innoviz Technologies, in its move toward electric vehicles, said Kotagiri.
The comments come a day after Israeli electric mobility startup REE Automotive announced its partnership with Magna to develop modular electric vehicles.
The agreement with Magna will bring full-fledged MEVs for tech companies and new electric mobility players under the "Powered by REE" brand, said REE on Monday.
"We see a growing demand for highly modular EVs from leading tech companies and new electric mobility players who have set their sights on entering the EV realm and building a brand in automotive," said REE co-founder and CEO Daniel Barel.
Late last year, Magna signed a deal with LG Electronics to create a joint venture called LG and Magna e-Powertrain JV to build components for electric cars.
The partnership will help manufacture electric motors, inverters and on-board chargers as Magna ambitiously expands into the fast-growing electric vehicle market.
The company expects its electrified powertrain business to have over US$2 billion in managed sales by 2023 and double by 2027, said Kotagiri.
The company also plans to electrify pickup trucks using its existing assembly processes and "eBeam" technology, he said.
In what he described as Magna's "solution for automakers to electrify pickup trucks without sacrificing their utility and functionality," Kotagiri said the company has received "significant interest from several (original equipment manufacturers) and expect(s) to bring this to market soon."
Kotagiri added that Magna will be launching its driver monitoring system, a safety feature that detects distracted driver behaviour, drowsiness and fatigue through an in-vehicle camera, in 2022.
Magna expects its sales to grow to between US$43 billion and US$45.5 billion in 2023, the company said.
This report by The Canadian Press was first published April 13, 2021.
Companies in this story: (TSX:MG)
Denise Paglinawan, The Canadian Press