Magna International stock was up almost five per cent in early trading Thursday following a technology development deal between the Canadian auto parts giant and Lyft Inc., an American ride-hailing company.
The CEO of Magna International says he sees a great long-term opportunity for developing advanced driverless car technology through its new multi-year partnership and a US$200 million investment in Lyft.
Magna chief executive Don Walker told analysts Thursday that Magna will have the exclusive right to manufacture kits that will be used to convert Lyft’s fleet into autonomous, driverless vehicles.
The kits will include cameras, radar and other sensors required for the vehicles as well as software developed by the two companies, using Magna’s manufacturing expertise and Lyft’s data from its ride-sharing operations..
Walker said Magna hopes the expertise it gains will help its relationship with current and future customers, which include many of the world’s best-known car manufacturers.
Magna shares were trading at $72.22 shortly after trading began in Toronto, up $3.23, or 4.6 per cent, from Wednesday’s close before the Lyft partnership was announced.