What is Magna International's role in greening the international automotive industry?
As a large automotive supplier building integral car parts for almost every automotive company globally, Magna International plays a key role and has a unique perspective on the green transition of the sector.
We can see where synergies exist and where alignment is possible, especially when it comes to energy efficiency in vehicles. A few weeks ago, for example, we were looking at how the mechatronics of EVs, through building efficiencies, can extend EV range or hybrid EV extension. This is a perspective that allows us to support our customers effectively.
Can you give an example of one of Magna International’s technologies that enhances EV performance and efficiency?
One of my favorite examples, which we just highlighted in our sustainability report, comes from our powertrain division. They have been able to improve efficiency within the powertrain and enhance integration between hybrid drive systems, ultimately extending the range of both EVs and hybrids. The innovation addresses the “missing middle” gap between 100% internal combustion engines and fully electric vehicles. By extending range and providing a backup gas motor, this innovation helps potential low-carbon vehicle buyers transition from internal combustion to electric power. This is crucial as it reduces emissions while also allowing customers to ease into fully electric vehicles.
How do you see hybrid vehicles fitting into the future of mobility? Are they just a transition technology?
Right now, I believe there is still a place for hybrids, particularly for new entrants into the space. As battery technology improves and charging infrastructure advances, we might see a stronger shift towards full EVs. However, hybrids will likely remain relevant for specific customer segments, such as those in geographies with limited charging infrastructure or those requiring long drives in challenging terrains.
The shift towards Software Defined Vehicles (SDVs) is reshaping not only automotive manufacture and consumer preferences – but urban mobility and design. How is Magna International contributing to the world of SDVs?
The future of cities will be influenced by both SDVs and customer preferences. We are seeing more younger customers not seeking traditional vehicles – perhaps not driving a vehicle at all. This shift in mindset will likely lead to a better use of vehicles and more innovative urban design. In terms of city design, SDVs could integrate well with public transit and offer more dynamic solutions for parking.
For instance, in Lisbon, they converted a multi-story parking structure into an open market and bar. The idea of creating self-sufficient mobility grids, using electric scooters, e-bikes, and interconnected vehicles, is exciting. Magna's work in MML and electronics could help drive these innovations forward, promoting better urban mobility. It takes eight to ten years for a product to reach the market in the automotive industry, so thinking must be long-term to prepare for emerging trends.
How does Magna International approach sourcing and reducing the use of rare earth metals?
The supply chain for rare earth materials is challenging, and we are actively engaged in reducing our reliance on these materials in our powertrains and motors. Our R&D teams, along with our suppliers, are working on innovations that reduce rare earth metal usage in our products.
Our sourcing team is responsible for ensuring that our supply chain is robust and resilient. They collaborate with customers and suppliers, using tools like ESG audit questionnaires and carbon data collection to get a holistic view of the supply chain.
How does the conversation around EVs differ between the North American and European automotive markets?
In Europe, EVs have been more common for a longer period, which has resulted in more developed infrastructure around them. The competition between EVs and internal combustion engines (ICE) might be less pronounced, as the focus is more on the capabilities of the vehicle itself. Each region faces its own challenges in growing the EV segment, influenced by local carbon regulations, tariffs, trade issues, and geopolitical events. It is an ever-changing environment, and we keep a close eye on these developments.
How is Magna International decarbonizing its own operations?
Magna has signed on to the Science Based Targets Initiative (SBTI) to achieve net-zero emissions, with an interim commitment for 2030. For our own operations, we are focusing on both scope one and two emissions, which include electricity and natural gas. By 2025, we aim to achieve 100% renewable electricity in Europe. A key aspect of this effort is reducing energy demand before transitioning to renewables. We are also focusing on how to reduce natural gas consumption and explore electrification, considering factors like the availability of clean electricity and the capacity of local grids.
As of this year, Magna has 36 facilities with on-site solar, a significant increase from the 18 facilities last year. This growth is driven by regions like China and Europe, where we have made substantial strides in integrating renewable energy into our operations.
