Magna International, one of the largest auto suppliers, will invest millions of dollars to expand its North American presence.
For context, the company provides auto parts for popular electric vehicle modes such as the Rivian R1S, Cadillac Lyriq, GMC Hummer, and the Ford F-150 Lightning.
As part of its latest investment in contract production, Magna is deepening its partnership with American legacy automaker Ford. With this, Magna advances as the first-ever auto supplier to erect a shop at Ford’s upcoming BlueOval City assembly campus in Tennessee.
About the investment
Tennessee Governor Bill Lee, along with Department of Economic and Community Development Commissioner Stuart C. McWhorter, announced Thursday that Magna will invest $790 million in the state to fund three new supplier facilities. Notably, two of the proposed facilities will be developed at Ford Motor Co’s 4,100-acre BlueOval City campus in Tennessee.
“Tennessee is leading the future of American automotive manufacturing, thanks to our thriving business climate, record economic growth and highly skilled workforce. We welcome Magna as the first supplier for Ford’s BlueOval City and appreciate this company’s $790 million investment in Tennessee, which will bring 1,300 jobs and new opportunities for families to thrive.”
Tennessee Governor Bill Lee
According to the press release, the development project includes an 800,000-square-foot frame and battery enclosure facility. It will apparently operate with the company’s current Ontario plant that currently supports Ford’s F-150 Lightning pickups production.
In addition, the project also includes a 140,000-square-foot seating facility that will manufacture polyurethane foam. It will also reportedly build and sequence complete just-in-time (JIT) seats.
In effect, the significant investment will generate as many as 1,050 new job opportunities in the state at Ford’s BlueOval City campus.
Meanwhile, Magna will develop the third facility in Lawrenceburg, where Ford is now constructing its “assembly city.” The new 400,000-square-foot facility will stamp and assemble vehicle frames, potentially generating additional 250 jobs.
“These opportunities not only strengthen our relationship with a valued customer, but also reflect the depth and breadth of our capabilities across the vehicle. We are thankful to the state of Tennessee for their support and partnership.”
Eric Wilds, Magna’s Chief Sales and Marketing Officer
See Also:
- Ford begins construction at Blue Oval SK EV Battery Park in Kentucky
- Ford plans to produce its next-gen electric truck at the $5.6B factory in 2025
- Ford secures $9.2 billion loan to accelerate electric vehicle battery production
- LG Magna to build e-Powertrain plant in Mexico, to supply GM with EV Parts
- Ford EVs to have access to Tesla Superchargers in 2024
Magna aims to begin constructing the three new facilities as early as 2025, approximately when Ford anticipates BlueOval City’s operation launch.
