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Magna International (MGA) Launches Carbon Fiber Subframe

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Magna International Inc. (MGA - Free Report) announced that it has developed a prototype carbon fiber composite subframe in collaboration with Ford Motor Company (F - Free Report) . The subframe will reduce the mass of the vehicle by 34% when compared with stamped steel equivalent. There is rising demand to reduce emission and improve fuel efficiency, which the carbon fiber will help achieve.

The prototype subframe will be replacing 45 steel parts with two molded and four metallic parts. The moldings are joined by adhesive bonding and structural rivets. Thus, the subframe will be reducing number of parts by 87%.

The carbon fiber subframe has been developed through research and development by Magna and Ford. Both the companies have analyzed the potential mass-reduction benefits and also the technical challenges of using carbon fiber-reinforced composites in chassis applications. A vehicle’s subframe is considered to be an important part of the structure as it attaches the engine and wheels and provides rigidity and crash management.

The company has combined its unique, vehicle knowledge on the design, materials and processing in order to deal with the weight reduction challenge. The design of the carbon fiber composite subframe has passed all performance requirements. These prototype subframes are being produced by Magna for vehicle-level testing at Ford.

Since many years Magna has been using lightweight materials. Previously, it has introduced CF hood for the Cadillac CTS/ATS-V series. It has also launched carbon fiber grille opening reinforcement for the Mustang Shelby Cobra GT500. In fact, with the development of a structural component like the subframe, Magna aims to help OEM partners achieve their targets.
 

Magna International, Inc. Price

Price Performance

Magna International underperformed the Zacks categorized Auto/Truck-Original Equipment Market industry over the last three months. The stock lost 2.9% over this period, while the industry saw a gain of 7.9%.


Zacks Rank & Key Picks

Magna International currently carries a Zacks Rank #3 (Hold).

Better-ranked companies in the auto space include American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) and Lear Corporation (LEA - Free Report) . Both the companies carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank  stocks here.

For the current year, American Axle and Lear expect earnings growth of around 8.1% and 8.9%, respectively.

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