Toronto, Ontario — On Thursday, Aurora, Ont.-based Magna International released its outlook for 2020, with the company predicting lower sales and ending its two-year partnership with ridesharing company Lyft.
While Magna predicts growth through to 2022, the automotive supplier expects 2020 sales to be negatively impacted by foreign currency translation—specifically, the strength of the U.S. dollar.
The supplier also said lower expected light vehicle production in Europe and the 2019 sale of its fluid pressure and controls business would impact its 2020 sales. Magna sold the business to South Korean-based Hanon Systems in March 2019.
The company says it expects total sales between $38 billion and $40 billion this year. Net income attributable to Magna is predicted to be between $1.8 billion and $2 billion.
“We expect our organic consolidated and unconsolidated sales to continue to grow through our outlook period,” said Don Walker, CEO of Magna. “Our growth includes a number of products tied to reduced emissions such as hybrid dual-clutch transmissions, e-drives, battery frames, and our portfolio of lightweight solutions. Also contributing to this growth are seating systems, electronic systems including ADAS, and the expansion of our vehicle assembly business into China.”
The company also announced the end of its near two-year collaboration with Lyft. According to Magna, the two companies were working to co-develop self-driving technology.
“We expect to continue to collaborate in several areas related to autonomous developments, including aspects of hardware development and potential joint opportunities in software and hardware manufacturing,” read the company’s release.
