Magna’s massive Mesa factory to assemble Waymo vehicles

We now know who Magna International is working with at its sprawling new manufacturing facility in Mesa.

Self-driving vehicle company Waymo LLC — the subsidiary of technology giant Alphabet Inc. (Nasdaq: GOOGL) — confirmed through a spokesperson Aug. 27 that it was partnering with Magna “on the integration of our fully autonomous driving technology from their new location in Arizona.

“We have a long and productive relationship with the city of Mesa and look forward to working here with Magna as we continue to grow,” the spokesperson added.

The Waymo spokesperson declined to provide details about how many of the company’s vehicles would be assembled at Magna’s Mesa facility, or about how many of those vehicles would be deployed in the Phoenix market. But Forbes first reported on Aug. 26 that the facility will outfit thousands of Waymo’s electric Jaguar SUVs as part of a rapid expansion effort. Currently, all final assembly of Waymo vehicles is completed at a Magna facility in Detroit, Forbes noted.

Magna, which is headquartered in Canada and in 2023 was named the fourth largest auto supplier in the world by Automotive News, is building out a 230,000-square-foot space at the Power Industrial Park in Mesa. The company could not immediately be reached for comment about its partnership with Waymo.

But that partnership marks the latest sign of Alphabet’s commitment to Waymo — as well as Phoenix’s standing in the company’s expansion plans. During its second quarter earnings call, Alphabet discussed a new $5 billion, multiyear investment into Waymo. The funding would enable its subsidiary to “continue to build the world’s leading autonomous driving technology company,” according to Ruth Porat, Alphabet’s former chief financial officer.

Phoenix Business Journal first reported in May that Magna was planning a new manufacturing facility in the Valley. At the time it was unclear what the company would be working on here — though its website featured a recruiting page with a statement that potential job applicants could “directly impact the world of mobility and help advance our industry while receiving a competitive salary and good benefits.”

Waymo’s Phoenix expansion continues

Waymo currently operates its driverless ride-hailing services in Los Angeles, San Francisco and Phoenix, where it has continuously expanded its operations. It is expected to launch in Austin, Texas, later this year, a company spokesperson confirmed.

The Alphabet subsidiary announced in August that it now provides more than 100,000 public rides per week to its customers, just a few months after announcing in May that it had crested the 50,000 weekly ride threshold.

Waymo has celebrated a number of milestones in the Valley during 2024, even as it has dealt with growing pains that have included a pair of voluntary recalls in the wake of traffic incidents. This week, a social media post went viral that showed a Waymo vehicle traveling in the wrong direction on a Tempe street, according to Phoenix’s CBS-TV Channel 5.

“The trust and safety of the community is our top priority. The Waymo Driver was proceeding through an intersection when the light changed, and the vehicle rerouted its course by making a right turn, safely clearing the intersection within a minute,” a Waymo spokesperson told the TV station in a statement. “We continuously refine our system’s performance to navigate complex scenarios while prioritizing community safety.”

Waymo began testing its autonomous vehicles on Valley freeways in January, and in April it announced a partnership to have its autonomous vehicles deliver food to Uber Eats customers. In June, Waymo expanded its autonomous ride-hailing service in Phoenix by 90 square miles, stretching its coverage area further north to include Desert Ridge, Scottsdale Quarter and TPC Scottsdale.

Most recently, the company began offering 24/7 service to Phoenix Sky Harbor International Airport Terminals 3 and 4, including curbside pickups and drop-offs. Waymo vehicles are already completing thousands of airport trips per week, according to a company spokesperson.

Phoenix remains Waymo’s largest market with 315 square miles of service. It has been providing ride-hailing services in the Phoenix area since 2018.

Waymo has now completed more than two million fully autonomous paid rides across all of its markets and has tested its vehicles in more than 25 U.S. cities, according to a company fact sheet.

Source: www.bizjournals.com