Magna enters mobility race with partnership

March 09, 2015 01:00 AM

Kotagiri: Program brings Silicon Valley-like startup culture to Detroit.

Automakers aren't the only ones with a hand in the mobility game.

Don't forget about suppliers such as Magna International, for instance, that could slide in and make a play as well. Automakers are dissecting new business models, but there's money to be made on the supply side, too.

While much of the mobility conversation revolves around how automakers will adapt to changing consumer tastes in an increasingly urbanized world, Magna has its eyes open for product proposals that could alter a mobility realm that's wide open for innovation.

Magna has partnered with Ford Motor Co., Verizon Telematics and startup accelerator Techstars to provide resources and mentorship in a new business incubator called Techstars Mobility, driven by Detroit.

The mobility program is a way to bring a Silicon Valley-like startup culture to the Motor City, said Swamy Kotagiri, Magna's chief technology officer.

Techstars Mobility, driven by Detroit begins in June with 10 startups that will receive $120,000 apiece. Ford says the 10 startups "from across the globe" will converge in downtown Detroit for three months of training in "business development, customer acquisition and effective executive recruitment."

The initiative will span three years and help develop 30 startups.

Magna is ready to pounce on any intriguing concepts that may hatch in the incubator. The company boasts a product portfolio that ranges from autonomous systems such as adaptive cruise control and lane-keep assist to the sliding rear window of the 2015 Ford F-150.

Kotagiri said the Canadian supplier has no problem looking outside the auto industry for ideas.

Magna and the Verizon Telematics connected car unit could team up on a mobility project if one of the startups proposes it, he said.

"As we work through startups and entrepreneurs, if they have a fantastic idea, we can work with them on business perspective and engineering discipline, and to scale something from an idea to a product," Kotagiri said. "That's what we're looking for."