Magna Develops and Pilots Autonomous, On-Road Last-Mile Delivery Solution

Rhea-AI Summary

On September 14, 2022, Magna unveiled its new 'last mile' delivery solution at the North American International Auto Show. This innovative service aims to cut delivery costs and carbon emissions in urban settings. The system features a lightweight electric robot, an autonomous driving system, and delivery software, allowing for diverse business models. The pilot program launched with a Detroit pizza restaurant has successfully delivered hundreds of pizzas. Additionally, Magna plans to expand into micromobility and collaborate with Cartken for a robot-as-a-service model.

Positive

• Successful pilot program delivering hundreds of pizzas in urban areas.
• Integration of autonomous driving technology aimed at reducing costs and emissions.
• Expansion into new business models, including robot-as-a-service.

Negative

• None.

• Targeting reductions in delivery cost and carbon emissions for “last mile” delivery
• Magna-developed autonomous driving system and delivery software
• Pilot demonstrates options for different business models, including robot-as-a-service

AURORA, Ontario, Sept. 14, 2022 (GLOBE NEWSWIRE) -- Today, at the North American International Auto Show in Detroit, Mich., Magna revealed how it is leveraging its expertise in automotive electrification and autonomy to develop new mobility business opportunities. The company has successfully developed and is piloting a novel “last mile” delivery solution for urban environments. 

The solution integrates a:

• Purpose-built, on-road, lightweight, electric robot;
• Magna-developed low-speed autonomous driving system; and
• Delivery software.
  

With the goal of significantly reducing last mile delivery costs and carbon emissions in cities, the Magna new mobility team built a “full-stack” solution, from the ground up, leveraging hardware and software from our automotive products. Magna’s solution enables retailers and other stakeholders to offer end-to-end last mile delivery across a range of potential business models.

The Magna-developed robot was launched on a pilot basis with a pizza restaurant in the Detroit area in March 2022. Since then, it has delivered hundreds of pizzas to residential and commercial locations near the restaurant. Magna is using data and consumer feedback to refine the service.

Magna’s robot can travel at speeds of up to 20 mph on public streets and the Magna-developed low-speed autonomous driving system uses cameras, radar, LIDAR and other hardware.

“Expanding into the growing world of new mobility is a key part of our ‘Go Forward’ strategy that takes Magna beyond its existing technical strength in automotive and vehicle systems, and into entirely new markets and business models,” said Matteo Del Sorbo, Executive Vice President, Magna International and Global Lead for Magna New Mobility. “The next phase in this pilot program is to apply our learnings to further refine the solution for a broader range of applications and use cases, scale, and unlocking innovative new business models.”

This development and pilot program follows two additional new mobility announcements recently made by Magna:

• Expansion into the fast-growing micromobility market through investment of $77 million in Yulu, India’s largest electrified shared mobility provider, and scaling the battery swapping infrastructure required to help accelerate the electrification of India’s two-wheeler fleet;
• Collaboration with Cartken, an autonomous robotics company that has developed autonomous sidewalk delivery and materials handling robots, for a robot-as-a-service business model with contract manufacturing, this includes Magna’s use of Cartken’s platform for different applications.

“Our expertise lies in the ability to design, engineer and scale at higher volumes. Additionally, we want to explore opportunities to generate additional revenue streams,” Del Sorbo adds. “These moves allow us to enter a space where we could offer mobility as a service, not just a point-of-sale product.”

TAGS
New Mobility, Automated Delivery, Last Mile Delivery, NAIAS, Yulu Mobility, Cartken

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 with a global, entrepreneurial-minded team of over 161,000 employees and an organizational structure designed to innovate like a startup. With 65+ years of expertise, and a systems approach to design, engineering and manufacturing that touches nearly every aspect of the vehicle, we are positioned to support advancing mobility in a transforming industry. Our global network includes 341 manufacturing operations and 89 product development, engineering and sales centres spanning 28 countries.

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

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.

Photos accompanying this announcement are available at:

https://www.globenewswire.com/NewsRoom/AttachmentNg/4f8e2171-6ced-4fff-ad61-d521d197796c

https://www.globenewswire.com/NewsRoom/AttachmentNg/a704ce4f-f94b-48bf-9e51-50ebce903acb

FAQ

What is Magna's new 'last mile' delivery solution?

Magna's new 'last mile' delivery solution integrates an electric robot, autonomous driving technology, and delivery software to reduce delivery costs and carbon emissions.

When was the pilot program for Magna's delivery robot launched?

The pilot program for Magna's delivery robot was launched in March 2022 with a pizza restaurant in the Detroit area.

What speeds can Magna's delivery robot achieve?

Magna's delivery robot can travel at speeds of up to 20 mph on public streets.

How does Magna's delivery solution support diverse business models?

Magna's solution allows retailers and stakeholders to offer end-to-end last mile delivery across various potential business models.

What investments has Magna made in the micromobility sector?

Magna has invested $77 million in Yulu, India's largest electrified shared mobility provider to expand into the micromobility market.