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
: On the 3 ADAS programs, I believe you mentioned before that all of this elevated cost level is preproduction engineering costs. So I would expect
you think that these costs are going to come down substantially as you get into launch. So could you maybe review the launch schedule for these
3 programs and when you expect these costs to peak and kind of how the cost change as we move forward?
Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: Okay. And moving to the Lyft joint venture, when does that venture start to wind down? And when do the associated costs come down along with
that?
Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: Okay. So safe to say then like with the wind down of the joint venture and the 3 ADAS programs, like those are going to be -- cumulatively, those
are going to be a tailwind for margin in 2020, I think, is what you're saying?
Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: Okay. And then just lastly, as I recall, when you provided your initial outlook for 2020, when you're looking at anticipated European production
volumes, you did take into account the new emission regulations and the potential impact that, that could have on volumes. And now that we're
a couple of months later, I'm just wondering, is there any read-throughs you can talk about regarding the new emission regulations? And like how
is it impacting volumes and mix? And have you changed your outlook at all for the impact that that's going to flow through down into Magna?
Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: And is the mix coming out any different than you anticipated in Europe? Or is it too early to tell?
Question: James Albert Picariello - KeyBanc Capital Markets Inc., Research Division - Analyst
: So you're clearly lowering the ADAS engineering component to your spend in 2020 after you account for the Lyft termination benefit. I believe
there's still an implied ramp in your electrification investments. Just wondering, can you speak to some key programs you're most excited about
on this front? For ADAS, we have this clean framework of 3 programs that start production late 2021. I know the exercise is not as easy on the
electrified propulsion front, but just would be curious if you had some key programs in mind that maybe have a similar launch curve to your ADAS
visibility.
Question: James Albert Picariello - KeyBanc Capital Markets Inc., Research Division - Analyst
: Got it. Yes, that makes sense. Very helpful. And then just one more housekeeping item on -- for the equity income. It sounds like in the quarter,
there was a benefit tied to lower depreciation and amortization. So was that onetime related? Or would you consider the benefit sustainable, kind
of lapping the first 3 quarters to the positive in 2020? Or again, more onetime related?
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