Issue 30- Magna Is Going Electric


Issue 30- Magna Is Going Electric

On July 24, 2019, Magna International Inc (TSX: MG) announced the signing of its first complete vehicle manufacturing joint venture in China. The JV is significant as it has the capacity to assemble 180,000 vehicles per year. The initial production of electric vehicles is expected to start in late 2020. The JV is between MG and Beijing Automotive Industry Holding Co Ltd (BAIC) and is a significant milestone for both companies. The JV will have the capability to offer EV Manufacturing contracts to many different customers. I’m of the opinion that this is only the start of many more JV facilities in China.

 

Disclaimer: Palos Funds are shareholders of MG.

By Charles Marleau, CIM & Joany Pagé, CFA

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