Toronto, Ontario — Magna and LG Electronics officially announce a launch date for its electrifying joint venture; classic car prices skyrocket and the Boyd Group sees 10 percent decreases to its share prices since the start of May, prompting investor attention, in this week’s Tuesday Ticker.
LG and Magna move ahead
Canadian auto parts manufacturer Magna International has announced a launch date for its joint venture with LG Electronics.
The joint venture will see the companies produce and sell electric vehicle (EV) powertrains capable of producing 250 kilowatts (338 horsepower) and will be launched sometime in July 2021, said the companies.
During its first-quarter performance call last month, LG Electronics forecasted that the joint venture between the two companies “will show a growth rate greater than the market size by the year 2025,” and that “the size of the electric vehicle parts market will grow by 35 percent on average annually by the year 2025 from its market size of approximately US$10 trillion won last year.”
Cash for the classics
Have you been contemplating selling that classic ‘project’ car that’s been sitting in your garage for the last 20 years? Now could be a perfect time; according to a recent Financial Review article, the prices of classic cars are skyrocketing “faster than gold.”
Prices for classic vehicles have risen more than 30 percent in the last 10 years—compared to around 10.5 percent for the MSCI global stockmarket index and 4.5 percent for gold, according to an analysis from classics aficionado Paul Higgins, who boasts a collection of nearly 70 cars.
The annual price change for the classic car market in 2020 increased 1.5 percent, according to U.K. enthusiast site AutoCar. But in the first three months of 2021 alone, the market saw price increases of two percent.
Buckle up, Boyd investors
Since early May, Boyd Group Services’ share prices have decreased more than 10 percent, prompting several analysts to keep their eyes on the company’s ticker.
Canadian market analyst source The Motley Fool cited Boyd as a “pricier play,” though said as more vehicles hit the road, there will be more accidents, making Boyd a “better buy for investors anxious about peak auto happening within the next two to three years.”
As of Monday’s close, shares of Boyd stood at CAD$208 per share, down 0.87 percent from Friday’s close.
