Magna's Volumes Hit by BMW, Ineos and Fisker Production Cuts

Automotive production and supply giant Magna International misses analysts’ revenues expectations for Q2 of 2024 with fewer vehicles assembled for clients and, in some cases, production halted altogether.

The company assembles many small-batch vehicles for automaker customers including BMW, Mazda and Ferrari and also produces specialist parts and powertrains for special projects. However, a slowdown in Magna's complete vehicle operations business sees it announcing more job cuts on top of those made earlier in the year, reports Reuters.

A company statement says: “Sales were negatively impacted by the end of production of certain programs (and) lower complete vehicle assembly volumes, including as a result of the end of production of the BMW 5-Series.”

The company also expects Ineos Automotive's vehicle program cancellation to lead to about $700 million in lost sales. In May, Magna recorded asset impairments and restructuring costs of $316 million related to the struggling BEV maker Fisker.

A slowdown in BEV sales across western markets also impacts Magna’s production volumes as automakers shift away from the technology and back to internal-combustion and electrified hybrid powertrains which are proving much more attractive to consumers.

Ontario-based Magna lowered its 2026 sales forecast range to $44.0 billion to $46.5 billion, compared with its prior view of $48.8 billion to $51.2 billion. Its overall quarterly revenue fell marginally to $10.96 billion, missing estimates of about $11 billion.