Fisker often compares this to the Apple-Foxconn relationship and hopes that this will avoid the production nightmares that troubled Tesla. Henrik Fisker's Ocean electric SUV will be built by Magna.Ī manufacturing and vehicle engineering partnership with Magna is key to Fisker's asset-light approach. Magna's customer list already extends well beyond the traditional automakers. Together with joint venture partner Beijing Automotive Group (BAIC) it recently added another facility in China, which is capable of producing 180,000 vehicles yearly. In 2019, Magna built almost 160,000 vehicles - more than many automakers produce - and generated $6.7 billion of revenue from these activities. Typically, automakers choose to outsource production of niche models, rather than retool or build a new production line, because the sales volumes are relatively small. Its contract manufacturing subsidiary, Magna Steyr, builds premium vehicles at a factory in Graz, Austria, including the Mercedes-Benz G-Class, the electric Jaguar I-Pace, the BMW Z4 sportscar and its platform sibling, the Toyota Supra. Magna is the world's third-largest auto supplier, having generated nearly $40 billion of revenue in 2019 from products such as transmissions, vehicle cameras, mirrors and seating, according to the Automotive News list of the top 100 global parts suppliers.
Magna's shares have almost trebled since March, giving it a $21 billion market value. Magna Steyr should build it," says Evercore ISI analyst Chris McNally.Įven if Apple does not deal with Magna, the supplier is already advising tech groups and start-ups looking to enter the automotive business, and investors have taken notice. "If Apple is serious about building a car. There is at least one big contract manufacturer ready to take advantage of these seismic industry changes: Canada's Magna International Inc. Apple designs the phone and its operating system but employs Foxconn to assemble components into a handset. If Apple is indeed seriously considering launching its own vehicle, as press reports suggest, then it will almost certainly decide to outsource, as it does with the iPhone.
#Apple car prototype software#
Increasingly, cars are judged on their software and electronics so why bother wasting time and money on construction? A current trend in the car industry is for new entrants such as Fisker to hand over the complicated and capital-intensive work of engineering and building vehicles to a contract manufacturer.