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
: Peter Sklar from BMO. Can you talk a little bit about this eDrive business? It's like in some cases, you have this full Tier 1 capability. In other cases,
you're supplying critical parts; inverters, motors, et cetera. So how is that going to play out? Like where are the OEMs going to play? Where is Magna
going to play? It sounds like everybody is in the sandbox everywhere right now. And where do you think we're going to end up on that? So that's
the first part of the question.
And the second part of the question is, like in terms of the eAxle, like there's a lot of competition there. You have the global OEMs themselves and
-- plus, as you know, there's other suppliers who are playing there as well. So what unique capabilities do you think Magna has in terms of eAxle
that gives you an advantage that you bring to the table?
Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: And does Magna tend to be a player both in primary and secondary? For some reason, I'm under the impression, and maybe I'm wrong, that the
contracts that you've been awarded are primarily secondary eDrive.
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MAY 10, 2022 / 1:00PM, MG.TO - Magna International Inc Investor Event
Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: Okay. And then the other area I wanted to address is I can't remember all the details but, Pat, a few years ago, there were -- I think it was a couple
of ADAS programs that you were initially launching and they had a lot of engineering and tests that were being expensed. And it got to the extent
where it was negatively impacting Magna's earnings.
Can you -- do you know what I'm -- do you recall what I'm referring to? Can you just review, what was happening with those programs? And why
were the costs so significant? And -- like is there a risk we're going to see that again where you have programs where costs are $100 million plus
and you have to call them out because they're noticeable?
Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: Okay. And then just lastly, Pat, the 18% going to 24%, I wasn't quite sure what those percentages represent, if you could just explain.
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MAY 10, 2022 / 1:00PM, MG.TO - Magna International Inc Investor Event
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