While outlining expectations for the next few years, Magna International also cut ties with its autonomous-vehicle partner Lyft on Thursday.
While Magna anticipates growth to 2022 it does expect sales this year to fall compared with 2019 due to a variety of factors.
In its outlook released Thursday, the Canadian auto supply giant said the stronger U.S. dollar, the sale of its fluid pressure and controls business and lower expected light vehicle production in Europe will all contribute to lower sales in 2020.
The company says it expects total sales between $38 billion and $40 billion this year. Net income attributable to the company for the year is expected to be between $1.8 billion and $2 billion.
CFO Vince Galifi said in a conference call that foreign exchange rates will cost the company $700 million in 2020.
The company also said Thursday that after nearly two years of collaboration, it has decided to end its self-driving technology partnership with Lyft.
“We are concluding our partnership to co-develop self-driving technology,” the company said in a statement. “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.”
The partnership was proposed as a way to merge Magna's automotive expertise with Lyft's data-gathering and real-world testing to roll out technology that they said was expected to be market-ready over the "next few years" as self-driving ambitions in the industry grew.
Magna now sees fully self-driving systems as a longer-term, expensive prospect and will shift focus to driver-assist systems with more reasonable timelines, Walkers said.
"I do think that the market has become more realistic about how fast the various technologies will penetrate," he said.
Walker said the industry and society are still in the early stages of what will be unprecedented changes in mobility.
Kotagiri said Magna would continue to work with Lyft on some aspects of software and hardware, but that it has many capabilities in-house.
"There is a renewed focus both in the market and the industry as well as from our side in terms of the take rates for the assisted driving portion of it. And we have significant programs, and we see a possible ability to address a lot of that market."
He said the sensor requirements for the higher levels of autonomy, which don't require the driver to always be at least ready to take the wheel, are significantly different to the lower levels that it's focused on.
Magna said it will focus more on near-term programs like its front and rear cameras and some surround view systems, as well as advanced radar systems.
Despite ending the self-driving technology partnership, Magna executives said advanced driver assistance systems, electrification and powertrain technologies are still key areas in which Magna will continue to expand.
Company executives said they see consolidation coming in the industry among automakers, Tier 1 suppliers and others developing these technologies, and that Magna may consider acquisitions related to new vehicle tech once the market levels off.
“We certainly have the ability with the balance sheet to make an acquisition we want,” Galifi said. “We want to be prudent in what we do.”
In the long term, Magna said it anticipates continued growth in total sales and improvement in its earnings before taxes, “both as compared to 2019 despite our expectation of relatively stable light vehicle production levels in North America and Europe during this same time period,” the company said.
The company also announced that its board appointed Swamy Kotagiri company president, reporting to CEO Don Walker.
Kotagiri will continue to oversee the company’s power and vision segment as well as corporate research and development programs and related investments.
Magna ranks No. 3 on Automotive News' list of the Top 100 global suppliers, with 2018 sales to OEMs of $40.8 billion.
The Canadian Press contributed to this report.