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Magna (MGA) Strengthens Alliance With Fisker to Develop ADAS

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Magna International Inc. (MGA - Free Report) recently announced its collaboration with Fisker Inc. for the development of an Advanced Driver Assistance System (ADAS) — Fisker Intelligent (FI)-Pilot — which will be applied to the Fisker Ocean sport utility vehicle (SUV) that is expected to be rolled out in late 2022.

The companies have joined forces to manufacture an industry-distinctive complete set of ADAS features and a group of software packages enabled by scalable domain controller architecture.

The alliance will result in the development of an advanced and scalable domain controller architecture that will underpin a range of technologies and features for the Ocean SUV. This will include multi-function autonomous systems supporting Fisker-unique feature sets. It will also be equipped with over-the-air updates (OTA), with the ability to deliver superior product features throughout the lifespan of the vehicle.

In addition to being integrated with high-resolution cameras and ultrasonic sensors, the ADAS package includes a unique and a digital imaging radar technology — Icon Radar — the first digital imaging single-chip radar solution for the auto industry. These technologies support driver assistance features capable of higher levels of autonomy. The ADAS will also contain a cybersecurity compliant and custom-made ownership experience.

In December 2020, Fisker and Magna entered into an operational phase platform-sharing and initial manufacturing agreement aimed at defining and concluding crucial aspects of the original framework agreement announced on Oct 15.

Per the agreement, the Fisker Ocean SUV will initially be produced exclusively by Magna in Europe, where it currently manufactures several premium quality vehicles on behalf of international brands. Fisker plans to roll out a production-intent prototype of the Ocean in the summer of 2021. The Fisker Ocean SUV will use a modified version of a Magna-developed electric vehicle (EV) platform to power Fisker’s FM29 platform.

The latest partnership to incorporate FI Pilot technologies into the Fisker Ocean SUV underscores Magna’s ability to bring scale and efficiency to the mobility sector. It is a significant expansion of the EV platform sharing, vehicle engineering and manufacturing cooperation announced between the two companies last October. In fact, this new collaboration marks the achievement of another milestone in the already-existing relationship between the two companies.

Magna has an impressive track record of being a company that major automakers can rely on when they need to boost manufacturing capacity or anchor design, engineering, and supply chain expertise. The latest tie-up is a classic demonstration of Magna’s strategy to extend its manufacturing arm to a new original equipment manufacturer like Fisker by providing a flexible EV platform, along with a complete ADAS package.
In fact, the collaboration is in line with Magna’s goals to pursue new business in areas where its unique capabilities can be deployed to gain an edge over competitors. Moreover, by working closely with such customers, Magna can gain synergies, including cost efficiency and scalability, and also provide rapid commercialization.

Zacks Rank and Other Key Picks

Magna currently flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Notably, shares of the company have appreciated 29.6% in the past year, while the industry has witnessed a rally of 12.3%.

Some other top-ranked stocks in the same industry include Lear Corporation (LEA - Free Report) , BRP Inc (DOOO - Free Report) and Dana Incorporated (DAN - Free Report) , all of which sport a Zacks Rank of 1, at present.

Shares of Lear, BRP and Dana have appreciated 15.7%, 42.5% and 10.1% respectively, over the past year.

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