Autoparts giant Magna quietly enters e-bike market
Nearly two years ago Magna Marque, a subsidiary of Magna International, quietly acquired a small company in Quebec called EPS Energy Propulsion Systems Inc., maker of the BionX e-bike kit. Manfred Gingl, founder and president of Magna Marque and former CEO of parent company Magna International, had a personal interest in bicycle technology and realized the market for e-bikes would be huge. Today, I have a story in the Toronto Star (sidebar here) that for the first time gives readers an inside look at what Magna is up to and how it plans to be a leading supplier of electric propulsion systems for bicycles and other mobile products, from paddle boats to three-wheeled urban vehicles. The company, quite simply, wants to be the Shimano of e-bikes. It already has supply agreements with Trek and is in serious talks with other bicycle manufacturers.
Aurora, Ont.-based Magna, of course, isn’t doing very well with its traditional business. It saw sales plummet 45 per cent in its most recent quarter, reported yesterday, and swung to a $205 million loss. The company, however, is gradually positioning itself as a leading supplier of drive trains and other components for the emerging electric car market, and has a partnership with Ford and other players to follow through with that vision. But Gingl’s view is that the e-bike opportunity will come faster than the electric car market, and the two nicely complement each other. Magna Marque can leverage battery and motor development taking place for the electric-car side of Magna’s business, giving it an edge over other competitors in the e-bike market.
The BionX system itself is, in my own view, quite impressive. I currently have a demo bike at home and enjoy the ride immensely. It takes some getting used to — i.e. the electric boost it sometimes provides, depending on your speed, can cause a mild jolt like a car going into passing gear. It might bother some people, but I actually like it. I rode 30 minutes home from work yesterday in jeans and in dress shoes, carrying a shopping bag in one hand, and easily tackled a head wind and hills averaging 30 kilometres an hour. Though I should emphasize this is no free ride — you have to peddle to trigger the electric-assist. It’s just that you do it more evenly and consistently than you might otherwise have to when approaching hills and wind. There’s an override that can put it into all-electric mode temporarily, but generally the idea around this kind of e-bike is that you still get the exercise but without the bursts of effort needed to tackle uneven terrain and forces of nature. I can see this being a hit with boomers, but younger folks will also see it as a way to make urban commuting by bicycle less intimidating.
I should also add that when you use the back brake it immediately goes into regenerative mode, charging the lithium-ion battery pack by capturing braking energy. You can also set the control so that it captures energy when you’re going downhill or riding with a tail wind or simply want the added resistance for the purpose of exercising.
Now, these things aren’t cheap. They range from $1,200 to $1,700 depending on battery power. And that’s without the bike. This is a kit, remember — a system than can either be retrofitted onto your existing bike or purchased as part of a package from a company such as Trek (in that case, you’ll likely pay more).
All in all, it’s encouraging to see a Canadian manufacturing gem like Magna taking this high-growth market seriously. It’s not going to replace lost auto-sector jobs and revenues, but when the auto sector rebounds the e-bike side of the business will certainly be a nice complement. Already, it has created 90 or so new jobs in the last year. And with Magna’s brand behind it, it will certainly raise awareness of e-bikes and their importance as we transition our transportation infrastructure away from congestion and pollution and toward free-flowing and emission-free.
By the way, as you’ll read in the story, Magna is developing an e-bike racking system that can be rolled out as part of a package to cities, resorts, gated communities, etc… that want to expand the bike-share concept seen in Paris and Montreal to electric bikes.
Tags: BionX, e-bicycle, e-bike, electric bicycle, Magna Marque, Manfred Gingl, pedelec
Tyler Hamilton is a business columnist for the Toronto Star, Canada's largest daily newspaper. In addition to this Clean Break blog, Tyler writes a weekly column of the same name that discusses trends, happenings and innovators in the clean technology and green energy market. This blog is a personal project started in April 2005. It is not an official blog of the newspaper.
Kawanabe’s statement is annoying though....
August 12th, 2009 at 10:58 am
I found it both quite prophetic and somewhat disturbing that in the same paper as this article appeared there was the report of a death following a bicycle hitting a pedestrian.
This type of system I assume is capable of doubling typical bicycle speeds. In a society where most bicycles seem to be ridden off the pavement(sadly) and most kids are never taught their proper and responsible use the prospect of electric bikes whizzing along our sidewalks is scary to say the least.
Inappropriate(illegal)use of minibikes, predominantly by kids would already seem to be rampant; no doubt they’ll jump in feet first with electric bikes and I assume sooner rather than later. It may be relatively unregulated right now, but that clearly will need to change and in advance. Or perhaps the government(s) see a ‘few casualties’ as an acceptable price of getting us out of our cars…
I just hope they don’t end up making, good old fashioned pedal bikes more trouble than, their use, is worth…
Ian Danby, Oshawa (a cyclist)
September 3rd, 2009 at 11:33 am
Ian,
E-bikes do not double typical bike speeds, and they are relatively regulated right now. In Ontario, they must be limited to 32 km/hr, which is a speed easily reached by even someone who is relatively unfit (me) on a hybrid bike. On the BionX, this means that the assist gradually tapers out as your speed increases, so that once you get above 30 kph you’re only travelling using your own power. I actually have a bionx system, which I bought because I used to work around 200m in elevation gain up the “mountain” from where I live in Hamilton. Now that work is only a couple small hills away, I have taken to leaving my motor at home, since I generally average about 30kph on flat roads, and I can use the exercise. My commute takes basically the same amount of time with or without the assist. With the motor, I just don’t get quite so sweaty, and I do go faster up hills.
I absolutely agree that cyclists need to ride responsibly. Sidewalk cycling is not safe, and is generally illegal. Cyclists who use the sidewalk for even a small portion of their commute are much more likely to get in accidents, mainly due to them not being in an expected place at intersections. Other vehicle users aren’t expecting relatively quick moving bicyclists to be on the sidewalk, and won’t look for them. Also, when I’m riding at 30 kph, I do not want to have to mix with pedestrians, especially kids or seniors, or people walking dogs. We need to help people learn how to safely share the road and design them better so that it’s easier to do so. That death was completely preventable.
Back to the subject at hand, it’s great that Magna is moving towards electric vehicles. I have to say that I really liked the small friendly Quebecois company, but the BionX is a quality product that deserves to have bigger circulation than they could manage. I’m glad that someone in Canada is looking towards the future. It’s good that such an awesome product is made in Canada!
-Adina
January 11th, 2010 at 9:01 pm
Sharing the Road
I see this clearly as a matter of how best to utilize our infrastructure safely and efficiently. This is an asset that belongs to all of us. However we now have factions bent on claiming a large portion of that infrastructure exclusively for their own use. It is unfortunate that it has come to this.
The animosity and lack of tolerance directed toward a new, low-speed form of personal transportation has become quite obvious, and is directly responsible for the very vocal attempts to discredit these vehicles and place onerous restrictions, obligations, and unrealistic requirements on the e-bike and e-scooter in the name of safety. Claims of e-bikes being too quiet, or too heavy or too wide, as well as the requirement that they be able to be pedaled, is an Aryan fitness attempt, that is a burden that this new form of green transportation is subjected to no-where else in the world.
Limiting slow moving e-scooters and e-bikes to the young and able-bodied potentially excludes the thousands of middle-aged and senior persons who would gladly leave their cars and trucks at home for all those short trips around the city, if they had an alternative that didn’t burden them physically, financially or with unnecessary obligations.
This is not Amsterdam or Paris. In Toronto, where I have lived and travelled by many different modes of transportation over the past 50 years, our roadways have often been covered with snow and ice for three or more months of the year. During that time no two-wheeled vehicle is particularly safe or desirable to ride. For this reason, one size does not fit all, here or anywhere else.
The initial inaction of the Ontario Government has put us five or six years behind British Columbia and Quebec and handicapped both riders and potential investors in green transportation alternatives. The best leadership that the MTO can demonstrate now is by leveling the playing field and allowing us to catch up to the rest of the country and the world.
The Ministry of Transportation, charged with the safe and efficient use of our infrastructure, should not be drawn into a debate about vehicles as a form of exercise equipment. The demographic of E-Bikes in our experience is from 40 to 75 Years of age. They are well aware of the rules of the road and are law abiding. Some, like me, have health issues and are unable to partake in an extended bike ride. However they have the right and desire to participate in our goal of a cleaner greener planet. Those who feel that the parks and paths and bike lanes of this city belong only to the able-bodied need only borrow my knees for three hours, to see the light. With out my E-Bike I have to use my car.
Any attempt to burden this new form of transportation with unreasonable requirements would serve to deter its use. Many are holding back from making an investment due to the uncertainty regarding the ministry’s intentions. The government could remove doubt and embrace this opportunity to get people out of their cars.
It is strange that the government has seen fit to seek out information about E-Bikes from factions that are loudly against them, rather than from people that actually know the product. There are many things that could make E-Biking safer and have been implemented all over the world, but you will not learn this from people that don’t want them on the road in the first place.
In other parts of the world these machines move huge quantities of people safely and efficiently and are technically far ahead of us. In our conversations with manufacturers, we find that they are amused by our antiquated rulings. They also charge extra, or in some cases refuse to supply us, for it is not worth their while to produce such small quantities with these requirements not asked for anywhere else.
These are my recommendations:
1. We need a government sponsored public education campaign, on billboards, television, radio and other media, regarding the Rules of the Road.
It would also be helpful if our various Police Departments would set a better example by asking their bike officers not to ride on the sidewalks.
2. E-Bikes have a proven safety record all over the world. They are more visible and better equipped than any bicycle. They are a clean and most efficient use of our infrastructure. It is therefore in the interest of the Department of Highways to move ahead and concentrate on safety issues for all two wheel methods of transportation without discrimination.
3. We all need to display a bit more tolerance and mutual respect as we travel in and around our cities. Cooperation toward a single goal, of using our infrastructure in a way that is beneficial to all, will show real leadership.
The Raptor Girl