Magna to Cooperate With Fisker on Engineering and Manufacturing of the Fisker Ocean

Rhea-AI Summary

Magna has entered into agreements with Fisker to manufacture the Fisker Ocean SUV in Europe, leveraging Magna's electric vehicle (EV) architecture. The production is slated to begin in Q4 2022, enhancing Magna's strategy to support both traditional and new automakers. Fisker will utilize Magna's engineering capabilities and innovative solutions, with Magna also receiving warrants to purchase approximately 6% of Fisker's equity. This collaboration positions Magna favorably in the growing e-mobility market.

Positive

• Agreements signed with Fisker for contract manufacturing of Fisker Ocean SUV in Europe.
• Production to start in Q4 2022, leveraging Magna's EV architecture.
• Magna receives warrants for approximately 6% of Fisker's equity, enhancing investment prospects.

Negative

• None.

• Magna to contract manufacture Fisker Ocean in Europe

• Fisker to leverage Magna’s EV architecture

• Magna portfolio scalable to meet future mobility needs

AURORA, Ontario, Oct. 15, 2020 (GLOBE NEWSWIRE) -- As part of Magna’s strategic direction to support traditional automakers as well as new entrants, the company announced today that it has signed agreements with Fisker Inc. that provide the framework for a platform sharing and manufacturing cooperation for the Fisker Ocean SUV. Fisker, an e-mobility automaker, announced plans to start production in the fourth quarter of 2022.

“We are very happy to be able to work with Fisker on such an exciting, sustainable product and to see what additional opportunities this cooperation may bring,” said Swamy Kotagiri, President of Magna. “This is a great example of our strategy to leverage our strong portfolio to scale for future mobility needs and utilize our full vehicle engineering and manufacturing capabilities. This is a unique competitive position for us, particularly with new mobility players and OEMs seeking to expand their electrified offerings.”

The Fisker Ocean will initially be manufactured exclusively by Magna in Europe. The vehicle will leverage Magna’s EV architecture combined with the Fisker-Flexible Platform Adaptive Design (FF-PAD) to create a lightweight, aluminum intensive platform for the Fisker Ocean.

“Magna has a unique position in the industry with its market-leading innovative solutions combined with vehicle assembly capabilities that have produced more than 3.7 million vehicles from 30 different models,” said Frank Klein, President Magna Steyr. Magna’s proven capabilities, particularly in electric vehicles, form a strong basis to support Fisker with world class engineering and manufacturing of the Fisker Ocean.”

As part of the cooperation, Fisker will issue Magna warrants to purchase shares currently representing approximately 6% of its equity.

TAGS
e-mobility, Fisker Ocean, contract vehicle manufacturing

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, 248.631.5396

ABOUT MAGNA
We are a mobility technology company. We have more than 152,000 entrepreneurial-minded employees and 346 manufacturing operations and 93 product development, engineering and sales centres in 27 countries. We have complete vehicle engineering and contract manufacturing expertise, as well as product capabilities that include body, chassis, exteriors, seating, powertrain, active driver assistance, electronics, mechatronics, mirrors, lighting and roof systems. Our common shares trade on the Toronto Stock Exchange (MG) and the New York Stock Exchange (MGA). For further information about Magna, visit www.magna.com.

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.

FAQ

What is the significance of Magna's contract with Fisker for the Fisker Ocean?

The contract enables Magna to manufacture the Fisker Ocean in Europe, leveraging its EV architecture, which strengthens Magna's position in the e-mobility market.

When is the production of Fisker Ocean expected to start?

Production of the Fisker Ocean is planned to commence in the fourth quarter of 2022.

What percentage of Fisker's equity does Magna acquire through warrants?

Magna will receive warrants to purchase shares representing approximately 6% of Fisker's equity.

How does Magna's agreement with Fisker impact its business strategy?

The agreement aligns with Magna's strategic direction to support both traditional automakers and new entrants in the electric vehicle market.