Magna Awarded Specialized eDrive System Business With North America-Based OEM

Rhea-AI Summary

Magna has been awarded a contract to supply a specialized primary rear eDrive system for a high-end niche vehicle platform, reflecting the company's commitment to supporting the automotive industry's electrification needs. The system, a variant of Magna’s 800V eDS Duo, delivers 726 kW of power and 8,000 Nm of torque, integrating two e-motors, two inverters, and two gearboxes into a single package. The award showcases Magna’s expertise in electric powertrain system engineering and integration, with serial production scheduled to start within the next few years at Magna’s facility in Ramos, Mexico.

Insights

Automotive Industry Analyst

The contract awarded to Magna for supplying an eDrive system to a North American OEM is a strategic development, signaling Magna's growing influence in the electric vehicle (EV) components market. The high-performance specifications of the 800V eDS Duo system, with its 726 kW power and 8,000 Nm torque, positions Magna favorably in the niche high-end EV segment, which is expected to see increased consumer demand as the market matures. The integration of multiple components into a single system could lead to economies of scale in production and potentially lower costs for Magna, enhancing its competitive edge.

From an investor's perspective, this move may indicate Magna's potential for increased market share and revenue growth in the EV powertrain space. Manufacturing at the Ramos facility in Mexico could also provide cost advantages due to lower labor costs, which might improve profit margins. However, investors should monitor the execution of the production ramp-up, as any delays could affect Magna's ability to capitalize on this opportunity.

Electrical Engineer

The technical aspects of Magna's 800V eDS Duo system suggest a significant advancement in EV powertrain technology. The high voltage system allows for faster charging and improved efficiency compared to the more common 400V systems. The integration of two e-motors, inverters and gearboxes in a single package is an engineering feat that could reduce weight and improve the vehicle's overall performance. This level of integration is crucial for high-end vehicles where performance and space utilization are key considerations.

For stakeholders, the reliability and efficiency of this system are paramount. Magna's approach to the cooling system design and the integration of components must ensure that the high power levels do not compromise the system's longevity. The technical complexity of such systems also implies the need for skilled labor and stringent quality control during manufacturing, which Magna will need to manage effectively to maintain its reputation and customer trust.

Sustainability Analyst

Magna's focus on electrification aligns with global trends toward sustainable transportation and reduced carbon emissions. The development of high-performance electrified platforms can accelerate the adoption of EVs by making them more attractive to consumers seeking both sustainability and performance. This contract also reflects the automotive industry's shift towards more specialized, high-value components for EVs, which could lead to a broader range of electric models catering to various market segments.

Long-term, Magna's investment in electrification technology could enhance its sustainability credentials and attract environmentally conscious investors. However, the environmental impact of manufacturing these complex systems, including resource extraction for components and energy consumption during production, should be considered. Magna's ability to minimize these impacts could further strengthen its position in a market increasingly focused on eco-innovation.

• New electrification program to support high-end niche vehicle platform
• Primary rear system is a variant of Magna’s 800V eDS Duo, delivering exceptional power and performance in one package
• Award reflects company’s expertise in electric powertrain system engineering, integration

AURORA, Ontario, Feb. 06, 2024 (GLOBE NEWSWIRE) -- Magna is growing its electrification customer base with a newly awarded contract from a North America-based OEM to supply a specialized primary rear eDrive system for one of the company’s high-end niche vehicle platforms. The award reinforces Magna’s commitment to supporting the automotive industry’s short and long-term transformational needs.

The highly complex system, a variant of Magna’s 800V eDS Duo, delivers exceptional power and performance offered by only a few vehicles on the road today. Boasting 726 kW of power and 8,000 Nm of torque, this solution integrates two e-motors, two inverters, and two gearboxes into a single package.

Magna’s responsibilities encompass the design of the gearbox and housing, the cooling system, and the integration of the e-motors and inverters to ensure reliability, efficiency, and continuous power levels.

“We are dedicated to assisting our customers in their transition to electrification by providing them with industry-leading electrified platforms for a sustainable, emission-free future,” said Diba Ilunga, President, Magna Powertrain. “This award reflects our expertise in electric powertrain system engineering and integration, as well as our collaborative approach with a highly valued customer to deliver cutting-edge solutions.”

The system will be manufactured at Magna’s facility in Ramos, Mexico, with serial production scheduled to start within the next few years.

TAGS
Electrification, EcoInnovation, eDrive, Product & Technology

INVESTOR CONTACT
Louis Tonelli, Vice-President, Investor Relations
louis.tonelli@magna.com, 905-726-7035

MEDIA CONTACT
Tracy Fuerst, Vice President, Corporate Communications & PR
tracy.fuerst@magna.com, 248-761-7004

ABOUT MAGNA
Magna is more than one of the world’s largest suppliers in the automotive space. We are a mobility technology company built to innovate, with a global, entrepreneurial-minded team of over 181,000 employees across 344 manufacturing operations and 104 product development, engineering and sales centers spanning 29 countries. With 65+ years of expertise, our ecosystem of interconnected products combined with our complete vehicle expertise uniquely positions us to advance mobility in an expanded transportation landscape.  

For further information about Magna (NYSE:MGA; TSX:MG), please visit www.magna.com or follow us on social.

THIS RELEASE MAY CONTAIN STATEMENTS WHICH CONSTITUTE “FORWARD-LOOKING STATEMENTS” UNDER APPLICABLE SECURITIES LEGISLATION AND ARE SUBJECT TO, AND EXPRESSLY QUALIFIED BY, THE CAUTIONARY DISCLAIMERS THAT ARE SET OUT IN MAGNA’S REGULATORY FILINGS. PLEASE REFER TO MAGNA’S MOST CURRENT MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL POSITION, ANNUAL INFORMATION FORM AND ANNUAL REPORT ON FORM 40-F, AS REPLACED OR UPDATED BY ANY OF MAGNA’S SUBSEQUENT REGULATORY FILINGS, WHICH SET OUT THE CAUTIONARY DISCLAIMERS, INCLUDING THE RISK FACTORS THAT COULD CAUSE ACTUAL EVENTS TO DIFFER MATERIALLY FROM THOSE INDICATED BY SUCH FORWARD-LOOKING STATEMENTS. THESE DOCUMENTS ARE AVAILABLE FOR REVIEW ON MAGNA’S WEBSITE AT WWW.MAGNA.COM.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/024a7380-58ba-40d5-97be-c288a037f351

FAQ

What is the recent contract awarded to Magna for?

Magna has been awarded a contract to supply a specialized primary rear eDrive system for a high-end niche vehicle platform.

What is the power and torque delivered by the eDrive system?

The eDrive system delivers 726 kW of power and 8,000 Nm of torque.

Where will the system be manufactured?

The system will be manufactured at Magna’s facility in Ramos, Mexico.

When is the serial production of the system scheduled to start?

Serial production of the system is scheduled to start within the next few years.