The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: Okay. Obviously, from your presentation this morning, ADAS and autonomy remains a significant area of focus for the company, an area where
you see significant growth through the coming decade. But on the other hand, your -- that's an area where you've indicated that your spend is
declining relative to where it was in 2019. So obviously, your spend on ADAS and autonomy, that have been increasing over the last number of
years. You're exiting the Lyft joint venture. But on the other hand, you anticipate additional programs with them. So I'm just wondering, like, how
do you reconcile that ADAS and autonomy is such an important area of growth for Magna. It's an area where you've been increasing your spending
now that, that trend of spend has reversed. And just wondering how you reconcile that.
Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: Okay. Just changing topics. Since the acquisition of GETRAG, there have been issues that have arisen in China related to it. Largely, it sounds like
the take rates for the GETRAG transmission has been lower than you anticipated. Can you just elaborate how you see things unfolding for GETRAG
in China through the forecast period?
Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: Okay. And can you talk -- 2 other issues with respect to GETRAG. Can you talk a little bit about, like, quoting activity, what the quoting outlook is?
And as well, can you talk about, there has been this erosion in take rates of manual transmissions and just what you're anticipating there through
the forecast period?
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Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: Okay. And lastly, Swamy, can you just talk a little bit about how you're seeing the new CO2 emission regulations, which are being introduced this
year in Europe, like how you anticipate that they're going to affect overall volumes?
Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst
: Congrats, Swamy. Maybe first question. Just if I could ask Peter's question another way on ADAS, the reduced spend, we shouldn't sort of take this
as you stepping back your investments in this space. It's really the change in the Lyft partnership and maybe a bit of overspend on certain programs
in '19. Is that correct?
Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay. Maybe just on the Lyft partnership, just perhaps the impetus for the change or the reason for -- what's behind the, excuse me, the change
in sort of, I guess, the direction of the partnership?
Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay. That's very helpful. If -- maybe if I can ask one last question then. Just in China, I think you said flat for production for your major programs
in 2020. I was just curious if you could share your thoughts sort of on the broader Chinese market and sort of what you think sort of volumes look
like in 2020 maybe just directionally.
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