The Ontario auto parts company said it cut another US$40 million in spending on its “megatrends” tech projects, bringing the total cuts in the division to US$90 million this year. The megatrends include technologies like electrification, connected cars, and “active safety” programs, like its acquisition of the autonomous-driving software and sensor company Veoneer. (The Logic)
Talking point: As a supplier for 58 global vehicle manufacturers, Magna has broad insight into the state of the industry—so it’s notable the company is pulling back from high-tech investments amid a weak EV sales forecast for the next couple years. It cut its 2026 sales outlook to a range of US$44 billion to US$46.5 billion, down from the US$48.8 billion to US$51.2 billion it forecasted in February—US$2 billion of which it attributed to a slowdown in the EV market, such as Ford’s changes to its EV plans in Oakville, Ont.. Another US$600 million of the cut was due to the failure of EV startup Fisker, while a cancelled program from off-road EV startup INEOS represented about US$700 million in lost sales. Meanwhile, Magna said, Chinese automakers are insourcing their advanced driver assistance systems. The company’s shares fell more than five per cent on Tuesday