Vince Galifi, Magna’s chief financial officer, told the Wall Street Journal in a Q&A that the Canadian auto parts manufacturer is going to increase its focus and spending on advanced driver assistance systems and the electrification of vehicles.
“If you look at our ADAS capability today, we probably had US $450 million-odd dollars in sales globally last year,” Galifi told reporter Chester Dawson. “We’re going to be growing that business at a compound growth rate of somewhere between 18-21 per cent per year through 2019.”
Galifi said growth in pure electric vehicles is going to be “a pretty small part of overall production and sales” through 2025.
“Where we see substantial growth [is in] electrification of vehicles. That is, moving from a purely internal combustion engine into mild hybrids [and] up to complete EVs,” he said. “We’re going to be [spending] north of a US $1 billion [per year on overall R&D], depending on how you measure it. ADAS and our electronics business is probably taking a bigger share of our r&d dollars on a percentage basis, but not necessarily in absolute dollars. Some of our other groups are [still] larger.”
Galifi also said he doesn’t believe there will be “massive disruption” in Magna’s operations if NAFTA is renegotiated.
“Medium to long-term, we’re pretty flexible,” he said in the interview.