Magna International Inc. (MGA - Free Report) announced that it has joined a consortium initiated by BMW AG (BAMXF - Free Report) and Intel Corporation (INTC - Free Report) to develop an autonomous and flexible vehicle platform for auto manufacturers by 2021. Notably, Intel’s subsidiary Mobileye is also part of this consortium.
Having entered into the consortium as a Tier 1 technology integrator, Magna will enable automakers to customize and industrialize the domain controller to be designed for autonomous driving platform.
This alliance will help auto manufacturers split high costs for developing self-driving vehicle technology, inclusive of research and development expenses, and hiring software expertise from the outside domain.
Magna International, Inc. Price and Consensus
Magna already has a long-term experience in combining complex systems onto different vehicle platforms for individual original equipment manufacturers (OEMs).
The company is an established name as a contract vehicle manufacturer for BMW for more than 15 years. Additionally, it has also been a supplier of BMW’s vehicles on a global scale for many years.
Earlier, in August, Magna had announced that it has plans up its sleeve to introduce a self-driving electronic platform, which can be used on existing vehicles as well as future electric and hybrid cars and trucks, enabling vehicles to engage in Level 4 driverless technology.
Shares of Magna have surged 37.6% in the last six months, outperforming the industry’s 28.3% rally.
Magna carries a Zacks Rank# 2 (Buy).
Another top-ranked auto stock is Toyota Motor Corporation (TM - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Toyota has an expected long-term earnings growth rate of 7%.
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