Magna, a leading Canadian auto-parts manufacturer, has announced a significant write-down in its latest earnings report, marking the value of its warrants in electric vehicle (EV) startup Fisker as ‘nil’. This adjustment reflects a US$316 million impairment and restructuring costs linked to Fisker’s challenges, including poor vehicle reviews and financial management issues, which have brought the company close to bankruptcy.
The fallout is affecting the broader supply chain, with automakers scaling back on EV initiatives, impacting Magna’s ability to recoup its investments timely. Despite these challenges, Magna reported a modest three percent increase in first-quarter sales, although its net income plummeted from US$209 million to US$9 million year-over-year.
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