Toronto, Ontario — This week, Stellantis teases EV plant operations on Canadian soil; Magna International makes an ADAS-aware move for its future and PPG reveals its Q2 2021 financials.
Smooth-talking Stellantis
Stellantis, formerly known as Fiat Chrysler Automobiles, is reportedly deciding on North American locations for two new electric vehicle battery plants, one of which could end up in Canada, said the automaker.
“From those two, at least one will be in the U.S., perhaps two, it’s not decided yet. But there’s also an option that one of the two will be in Canada,” said Stellantis CEO Carlos Tavares during a fireside chat last week. He said the company is currently in high-level discussions with local authorities and technology partners to pick their sites.
“We are ready to push the button, we just need to finalize a few discussions to make it legally binding,” said Tavares.
Dave Cassidy of Unifor Local 444, which represents workers at Windsor, Ontario’s Stellantis minivan plant, told CTV News he believes the region is well-positioned to land the automaker’s investment.
“It’s a no-brainer to me,” he told the news channel. “We have the people, we have the skill sets. We have what’s needed, right here in Windsor.”
Stephen MacKenzie, CEO of InvestWindsorEssex, a not-for-profit organization designed to advance economic development in the Windsor-Essex region, said securing Stellantis’ business is a “priority” for his team.
“To get a plant—is it a priority? Is it number one on my wishlist? 100 percent right, it is, “ he said.
MacKenzie also said that, if the attempts are successful, an additional two billion dollars in supply chain investments could be reaped, as well as hundreds, if not thousands of new jobs.
“It will change this region,” he said.
A decision should be made by the end of 2021, indicated Tavares.
Ontarians on ADAS
Aurora, Ontario-based Magna International has reached an agreement to acquire Swedish automotive safety tech firm Veoneer for US$3.8 billion, including debt.
Magna will pay US$31.25 per share, in cash—a 57 percent premium reflecting an enterprise value of US$3.3 billion. It plans to operate Veoneers’ Arriver sensor perception and drive policy software platform as an independent business unit and acquire its restraint control systems.
Veoneer shares traded as high as US$31.36 shortly after the start of regular trading Friday, while Magna’s New York-listed stock fell as much as 7.1 percent–its biggest intraday drop in more than a year.
Veoneer will be incorporated with Magna’s existing ADAS business, integrated into the company’s electronics operating unit. The deal is expected to close later this year.
PPG proves powerful
PPG reported its Q2 2021 financial results last week, marking net sales of nearly US$4.4 billion—a 45 percent increase over last year’s Q2 results.
Second-quarter 2021 net income was US$431 million, or US$1.80 per diluted share, and adjusted net income was US$465 million, or US$1.94 per diluted share.
“Our strong organic sales growth reflects a partial demand recovery from the pandemic, including above-market contributions across many of our businesses. However, our volume growth was significantly tempered due to various supply and component disruptions, including those that reduced the overall manufacturing capability of our customers,” said Michael H. McGarry, PPG chairman and chief executive officer.
PPG also closed a number of acquisitions during Q2.
“We closed the Tikkurila, Wörwag, and Cetelon transactions during the second quarter. We have now completed five acquisitions since December 2020, and we welcome all of our new colleagues to the PPG team,” said McGarry. “These acquisitions have greatly improved our product and technology portfolios, geographic reach, and sustainability capabilities. In aggregate, these acquisitions bring more than 10 percent sales growth, based on 2019 levels, and strong earnings growth potential.”
