Magna plans to start producing its own electric vehicles in Canada within the next three years.
The parts supplier, which is currently involved in talks with General Motors to buy a stake in Opel/Vauxhall, plans to become a serious car maker and sees electric vehicles as its opportunity.
Frank Stronach, Magna chairman, said, “The electric car is top priority at Magna. We have a serious commitment and we'd like to operate in manufacturing in Canada.”
Stronach estimates that in six years' time, 15 per cent of cars sold will be electric or hybrid. And he expects that figure to jump to 30 per cent by 2021.
Magna is investing $150 million (£92 million) into the car, and the Canadian government is expected to match that amount. A Magna official told Canadian media that its electric vehicle could travel as far as 100 miles on a single charge.