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Magna to supply Lyft with kits to make self-driving autos

From Reuters - March 15, 2018

MONTREAL (Reuters) - Magna International Inc said on Thursday it will supply Lyft with high-tech kits to turn vehicles into self-driving cars, but will not manufacture autos for the ride-hailing service.

Magna shares rose more than 4 percent in early trade as executives described the auto suppliers role in a new autonomous venture with Lyft. The Canadian auto-parts supplier said late on Wednesday that it would invest $200 million in Lyft and work with the firm to co-develop self-driving cars.

As we work with Lyft, hopefully that brings for us an opportunity to potentially do more with Lyft as well as others in this area, Magna Chief Financial Officer Vince Galifi said in a Thursday morning call with financial analysts.

The auto industry is looking for ways to profit from the rise of car-sharing services like Lyft and bigger rival Uber, which are expected to reduce vehicle sales and chip away at future profits.

Goldman Sachs has predicted that the ride-hailing market will grow eightfold by 2030 to five times the current taxi market.

Several automakers, however, do not expect self-driving vehicles to be in production before 2021.

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