By Shradha Singh
(Reuters) - Canadian auto parts maker Magna International Inc (TO:MG) on Thursday forecast lower sales for 2020, hurt by a stronger U.S. dollar, the sale of its fluid pressure and controls business and lower light-vehicle output in Europe.
The company also said it discontinued its partnership with Lyft (O:LYFT) to co-develop self-driving technology. It had invested $200 million in the U.S. ride-hailing firm in 2018 to manufacture self-driving cars. (https://reut.rs/2Nx7zxQ)
The Ontario, Canada-based company said it expects 2020 sales to be between $38 billion and $40 billion and net income attributable to be in the range of $1.8 billion to $2 billion.
Analysts on average expect Magna to report revenue of $39.97 billion and profit of $1.94 billion, according to IBES data from Refinitiv.
The company estimated it would produce 16.3 million units of light vehicle in North America and 20.8 million units in Europe this year.
Industry experts expect U.S. auto sales to dip below the 17-million mark in 2020, as demand has peaked following the long bull-run since the 2008 financial crisis. Auto consultants LMC Automotive and J.D. Power have forecast total light-vehicle demand to decline 1.4% to 16.8 million units in 2020.