Published on 13 Jan 2022 on Zacks via Yahoo Finance
Magna (MGA) Expands Workforce to Strengthen ADAS Abilities
Magna International MGA recently added 120 engineers to its workforce from Optimus Ride, an autonomous vehicle and mobility company, to bolster its know-how in advanced driver assistance systems (ADAS). To feature well in the rapidly growing ADAS market and enhance its engineering bench strength in sensing hardware and software, Allison considered bringing in additional expertise to support current programs and future customer needs.Optimus Ride’s former team will continue to be based in Boston’s Seaport District. It will establish a Boston-based engineering center, which will benefit Magna by strengthening its presence in the community.In recent months, the company has been on a fast-paced expansion adding extra staff and acquiring companies to its existing 150,000 or so employees worldwide. In July 2021, the company partnered with LG over an electric powertrain joint venture, aiming to create e-motors, inverters and onboard chargers and, for certain automakers, related e-drive systems. It plans to launch its own powertrain system this year, with a target to increase the range up to 30% compared to traditional electric vehicles.Magna is actively focusing on innovation and technology development, along with program launches across its business segments, and stands to benefit from key emerging trends, including electrification and autonomous driving. MGA’s sharp focus on developing ADAS technology and enhancing its portfolio of e-powertrain products offers ample growth visibility. It envisions ADAS business sales to witness a compound annual growth rate of around 20% from 2020-2023 and 15%-20% from 2020-2027.Magna’s shares have risen 16.2% over the past year against the industry’s 37.3% decline. The company has an expected earnings growth rate of 48% for the current year.
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