Magna International Inc. is homing in its research and development efforts on electric- and hybrid-vehicle projects as it works to balance light but growing volumes of parts for next-generation vehicles with demand for its “traditional” lineup of products.
About 70 percent of the engineering projects under way at North America's largest supplier are now geared toward EVs or hybrids, and the company’s powertrain division is no exception, the unit’s president Tom Rucker, told Automotive News Canada. It is a considerable mismatch when compared with the 15 percent of Magna’s production currently devoted to electrified-vehicle programs.
But the company’s research pipeline sends a clear message about what will be driving growth at the company through the 2020s. Once slow to materialize, EV demand is picking up at a rapid pace, Rucker said.
“Many or most of our customers are shifting their focus away from traditional ICE [internal-comb…