Magna International MGA recently launched a joint venture (JV) with LG Electronics named LG Magna ePowertrain to inaugurate a facility in Ramos, Mexico, the JV’s first production footprint in North America. The sprawling 260,000-square-foot plant, scheduled for completion in 2023, will produce a range of powertrain components to support electric vehicle (EV) production from General Motors GM. General Motors will be the foundational customer for the new facility.
The JV, launched in July of 2021, is expected to generate 400 new jobs. It spans Korea, North and South America, Europe and Asia.
It will combine LG Electronics’ experience in EV technology and Magna’s long-standing reputation in traditional automotive manufacturing.
Aside from its venture with LG, Magna has manufacturing contracts with EV automakers like Fisker, REE Automotive and Jaguar Land Rover. It is also developing its own EtelligentDrive products like its EtelligentReach powertrain.
This new facility is testimony to the growth of LG Magna e-Powertrain’s ongoing success. It continuously enables the companies to better support their customers with premium components for the next generation of EVs.
The Mexico plant will join LG Magna ePowertrain’s only manufacturing facility in Nanjing, China,
In the span of one year, Magna Powertrain has added an expansion agreement and identified a strategic location to support its customers.
Shares of MGA have declined 33.8% over the past year compared to its industry’s 43.8% decline.
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Zacks Rank & Key Picks
MGA currently carries a Zacks Rank #4 (Sell).
Better-ranked players in the auto space include BRP Group, Inc. DOOO, sporting a Zacks Rank #1 (Strong Buy) and CNH Industrial CNHI, carrying a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
BRP Group has an expected earnings growth rate of 9.1% for fiscal 2023. The Zacks Consensus Estimate for current-year earnings has been revised around 7.9% upward in the past 60 days.
BRP Group’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. DOOO pulled off a trailing four-quarter earnings surprise of 68%, on average. The stock has declined 6% over the past year.
CNH Industrial has an expected earnings growth rate of 2.2% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 0.73% upward in the past 60 days.
CNH Industrial’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. CNHI pulled off a trailing four-quarter earnings surprise of 63%, on average. The stock has risen 2.7% over the past year.
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