The move comes as automakers are increasingly seeking alliances to share the high costs of developing self-driving vehicle technology, which requires extensive research and development and software expertise outside the traditional domain of carmakers.
Magna is the latest addition to the BMW-Intel alliance, which aims to develop new technology that could put self-driving cars on the road by around 2021.The consortium also includes Mobileye, Fiat Chrysler and auto suppliers Delphi Automotive and Continental AG.
For a fascinating look at the broad scope of companies working on self-driving, check out this interactive graphic and this overview story.
Earlier this year, Intel bought Mobileye, the world's largest supplier of systems used in automotive collision detection systems, for $15 billion.
Magna will also help automakers industrialize the platform designed by the consortium, the Canadian company in a statement.
Reporting by Munsif Vengattil and Aishwarya Venugopal