Magna estimates lower 2020 sales

Magna International anticipates growth to 2022 but it does expect sales this year to fall compared with 2019 due to a variety of factors.

The Canadian auto supply giant said the stronger U.S. dollar, the sale of its fluid pressure and controls business and lower expected light vehicle production in Europe will all contribute to lower sales in 2020.

The company says it expects total sales between $38 billion and $40 billion this year. Net income attributable to the company for the year is expected to be between $1.8 billion and $2 billion.

CFO Vince Galifi said in a conference call that foreign exchange rates will cost the company $700 million in 2020.

The company also said Thursday that after nearly two years of collaboration, it has decided to end its self-driving technology partnership with Lyft. Despite ending the self-driving technology partnership, Magna executives said advanced driver assistance systems, electrification and powertrain technologies are still key areas in which Magna will continue to expand.

Company executives said they see consolidation coming in the industry among automakers, Tier 1 suppliers and others developing these technologies, and that Magna may consider acquisitions related to new vehicle tech once the market levels off.

Via Automotive News