Magna and IBM to Develop Vehicle Systems

The Magna Electronics unit of Canadian auto parts maker Magna International Inc. has struck a five-year agreement to work with IBM to develop vehicle electronic systems. Magna and New York-based IBM "will partner in systems design, software development and engineering to enhance Magna Electronics' vehicle-based computing systems," the companies announced Wednesday.

From AFX News Limited

TORONTO — The Magna Electronics unit of Canadian auto parts maker Magna International Inc. has struck a five-year agreement to work with IBM to develop vehicle electronic systems.

Magna and New York-based IBM "will partner in systems design, software development and engineering to enhance Magna Electronics’ vehicle-based computing systems," the companies announced Wednesday.

Financial arrangements were not disclosed for the collaboration, which "enables both companies to best compete in the growing electronics sector through the synergy of IBM’s extensive technical resources in information technology with Magna’s recognized expertise in the automotive industry."

Magna Electronics was formed last year to concentrate on driver assistance and safety systems, wireless connectivity, power systems and body electronics.

Shares of Magna rose 51 cents to $72.93 in afternoon trading Wednesday on the New York Stock Exchange. IBM shares gave up 12 cents to $82.16 on the Big Board.