Magna International Inc. MGA has announced that it has received a contract to produce Jaguar Land Rover's E-PACE at its manufacturing facility in Graz, Austria.
It is the second model to be manufactured in Magna International's facility at Austria, Jaguar's I-PACE model being the first. This development is likely to bolster the company's leadership position in contract manufacturing. The production of E-PACE, a compact SUV will start in the fourth quarter of 2017.
Together with Jaguar's E-PACE, the company will be manufacturing five unalike vehicle models by 2018's first-quarter. The other models include Jaguar I-PACE, BMW 5 Series, BMW 530e plug-in hybrid and Mercedes-Benz G-Class.
The global sales of crossovers and SUVs have increased to 29% in 2016, thus pushing automakers to introduce new models to meet the huge pressure. Jaguar Land Rover's latest contract vehicle production at Magna International's manufacturing hub is one such example.
The company's contract vehicle assembly facility in Graz, Austria is winning many new business contracts. Prior to Jaguar's E-PACE deal on Jun 2017, the company won a contract manufacturing from BMW, under which it will make the brand new 530e plug-in hybrid model for BMW. This apart, Magna International already has contracts to manufacture the new BMW 5 Series sedan as well as a Jaguar Land Rover vehicle from the second half of 2017.
The company has also secured a contract extension on the Mercedes-Benz G-Class. With these, the plant is expected to reach production volumes of around 200,000 vehicles per year by 2018. As a contract manufacturer, the company has till now produced 3 million vehicles of 23 different models. Price Performance
Magna International has outperformed the Zacks categorized Auto/Truck-Original Equipment
industry in the last three months. The stock has rallied 21.6% compared with the industry's gain of 15% during the period.
Zacks Rank & Key Picks
Magna International currently carries a Zacks Rank #3 (Hold).
Magna International, Inc. Price and Consensus
Magna International, Inc. Price and Consensus | Magna International, Inc. Quote
Some better-ranked companies in the auto space are Daimler AG DDAIF , Allison Transmission Holdings Inc. ALSN and Fox Factory Holding Corp. FOXF , all three sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Allison Transmission has expected long-term growth rate of 11%.
Fox Factory has expected long-term growth rate of 15.9%.
Daimler has expected long-term growth of 2.8%.
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