Canada’s largest auto parts company, Magna International Inc. (NYSE: MGA) announced that it plans to produce a plug-in hybrid car that will be available in 2009 or 2010.
The parts giant, based in Aurora, Ontario, has said in the past that it will not compete directly with the auto makers it supplies, suggesting it could manufacture a vehicle on a contract basis for one of its customers or seek out a non-competitive niche of its own.
The company said the project is headquartered at the Magna Steyr manufacturing and research and development operations in Austria and is focusing on a vehicle that is primarily battery powered, with internal combustion assistance.
Hybrids currently on the market are primarily powered by gasoline motors with battery assistance.
The company has diverse expertise in areas crucial to the development of fuel-efficient vehicles, such as lightweight metals, new uses for plastics, expertise in development of engines and engine components, and its experience in co-ordinating complete vehicle assembly.
Frank Stronach, founder of the company said cars with Magna-developed hybrid engines are already being tested in Europe. In addition, the company has also developed a hybrid that runs on compressed natural gas.
Magna has set aside an initial budget of $30-million to develop the car.
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