While Dana's products are in high demand from EV makers, its stock hasn't enjoyed the same popularity with investors. Illustrating how prominent a role EVs will play in Dana's future, the company recently reported that EVs account for 65% of its $900 million backlog through 2025. In 2023, Dana plans on supplying products to leading EV manufacturers such as Rivian and Nikola, as well as Ford for its Lightning F-150. Now, Dana supplies EV makers with thermal management products for EV motors and inverters, as well as solutions for battery cooling. While the company supplies parts for internal combustion vehicles, it has made a concerted effort in the past several years to position itself for growth in the EV market, acquiring companies with EV expertise such as TM4 and Prestolite E-Propulsion Systems. Dana's customer list includes many of the world's largest automakers, including Ford, Stellantis, and Tata Motors. Scott Levine (Dana) : Looking for EV exposure but uninterested in the risks tied to investing in an individual EV maker? Dana is a stock you may want to hitch a ride with.Ī leading designer and manufacturer of energy management solutions, Dana has a history of supporting automakers that stretches back to 1904 - and now, with operations in 31 countries, it supports a lot of automakers. Management believes it can grow its sales at a faster rate than overall light vehicle production growth as it increases its content per vehicle in EVs. For example, it recently announced it was making a $470 million investment in expanding its operations in Ontario, Canada, to produce battery enclosures for EVs, among them, the popular Ford ( F 0.94%) F150 Lightning.Īs such, the company's long-term future looks bright. The latter includes battery enclosures and powertrain electrification. Meanwhile, its exposure to body exteriors and structures (aspects of vehicles that are not impacted by the shift from internal combustion engines to EVs) is large, and it's investing in its already significant and expanding line of products that benefit from the shift. Management argues that Magna's exposure to areas like fuel tanks, manual transmissions, and four-wheel drive (products that are not relevant for EVs) is relatively small. Lee Samaha (Magna International): The key to Magna's investment case lies in its components' relevance to EV production. Magna's piece of the electric vehicle pie is growing
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