Magna International to set up electric vehicle joint venture
Though it has managed to fly a bit under most people's radar, Magna Internationl Inc., is North America's largest auto parts producer and third in the world. The name might not be commonplace, but it probably should be. We're well aware of the electric vehicle (EV) deal that Magna has going with Ford – which led to the Focus EV pictured above – and a concept EV previewed awhile back; now the company hopes to break out and form its own EV venture.
How it's all supposed to play out is a bit confusing, but we'll take a stab at it. Frank Stronach, founder of Magna International Inc. will eliminate something called Magna's Class B shares. This will basically relinquish most of his control over the company and open him up to partially own the joint venture between Magna and Stronach Trust. This newly formed joint venture will focus on building hybrid and electric vehicles for customers, which will likely include automakers seeking help breaking into the EV market.
Stronach is a huge supporter of electric vehicles and he's capable of achieving big dreams. He started Magna in a garage in Toronto and effectively made it into a multi-billion dollar business. We're certainly interested in how his new joint venture plays out, given Magna's expertise and Stronach's drive.
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