Magna (MGA) To Manufacture New Mercedes G-Class At Graz Hub

Magna International, Inc. (NYSE:MGA) announced that it is supporting the production of the new Mercedes-Benz G-Class via contract manufacturing. The model will be assembled at Magna International’s Graz, Austria facility.

Per management, this contract manufacturing of the updated Mercedes-Benz G-Class will enable the company to display its capability and flexibility as an experienced contract manufacturing partner.

As a highly regarded and famous off-road vehicle brand, this new G-Class has been upgraded with additional technology and space in its interiors.

Magna International, Inc. Price and Consensus

Notably, for the past 40 years, the G-Class models were built at the Graz facility, at first under the flag of Steyr-Daimler-Puch and since 1988, under Magna International. Moreover, since the beginning of its production at the Graz facility, more than 300,000 units have been produced. Further, the collaboration between Daimler and Magna International, which started in 2014, will run through 2023.

The company’s Graz facility has been winning many new business contracts. Prior to this in July 2017, it received a contract to produce Jaguar’s E-PACE model. While in June 2017, the company won a contract manufacturing from BMW, under which, it will manufacture new 530e plug-in hybrid model for BMW.

Price Performance

In the last three months, shares of Magna International have gained 7.4%, outperforming the 5.5% rise of the industry it belongs to.

Zacks Rank & Key Picks

Magna International has a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Volkswagen (DE:VOWG_p) AG (OTC:VLKAY) , Lear Corporation (NYSE:LEA) and BMW AG BAMXF, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Volkswagen has an expected long-term growth rate of 12.9%. Shares of the company have rallied 28.5% in the last three months.

Lear has an expected long-term growth rate of 7.1%. In the last three months, shares of the company have gained 9.9%.

BMW has an expected long-term growth rate of 4.2%. Shares of the company have increased 10.4% over the last 30 days.

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