TOKYO/FRANKFURT, Germany -- Magna Steyr of Austria, the world's largest contract manufacturer of automobile bodies, is drawing attention as new entrants in the auto industry from other sectors increase amid a global shift to electric vehicles.
Magna has been primarily developing and manufacturing luxury and other models for low-volume production under contracts with automakers. The increasing shift to EVs has raised its presence as an intermediary for outside companies' entry into vehicle production. Entry into the production of gasoline-powered vehicles is difficult, as they consist of some 30,000 parts each. The auto industry has developed a pyramid-type structure, with automakers having suppliers under them. In other words, the industry has a"vertically integrated" business model in which companies belonging to carmakers' groups engage in the whole process from procurement to production and marketing.
Information technology companies are breaking into the auto industry. In the U.S., Amazon has acquired Zoox, an autonomous vehicle startup, for the development of unmanned delivery service, while Google parent Alphabet is developing self-driving technology using its subsidiary Waymo.
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