Magna announces continuing involvement in proposed Opel solution



    AURORA, ON, June 1 /CNW/ - Magna International Inc. (TSX: MG.A, NYSE:  
MGA) announced today that, following extensive negotiations over the past
several days with various stakeholders, including representatives of German
federal and state governments, GM Europe, General Motors Corporation and the
US Treasury, it has reached a conceptual framework that should allow Opel to
avoid a possible insolvency filing and pursue the restructuring required for
its immediate and long-term viability. The framework reflects the total
investment amount and the equity interests previously disclosed on May 22,
2009.
    Frank Stronach, Chairman of Magna, stated "While the recent negotiations
have been intense and difficult at times, I believe we have achieved a
constructive solution that represents a "win-win" for all stakeholders and
will position Opel to compete and succeed. We are thankful for the dedication
of all interested parties and look forward to continuing to work with General
Motors, the German governments and other stakeholders to turn our concept into
a reality in the next phase of the process, as the parties work toward
definitive agreements."
    There is no assurance that any transaction will result from Magna's
current involvement.
    We are the most diversified global automotive supplier. We design,
develop and manufacture technologically advanced systems, assemblies, modules
and components, and engineer and assemble complete vehicles, primarily for
sale to original equipment manufacturers ("OEMs") of cars and light trucks.
Our capabilities include the design, engineering, testing and manufacture of
automotive interior systems; seating systems; closure systems; body and
chassis systems; vision systems; electronic systems; exterior systems;
powertrain systems; roof systems; as well as complete vehicle engineering and
assembly.
    We have approximately 74,000 employees in 240 manufacturing operations
and 86 product development, engineering and sales centres in 25 countries.

    FORWARD-LOOKING STATEMENTS

    This press release may contain statements that, to the extent that they
are not recitations of historical fact, constitute "forward-looking
statements" within the meaning of applicable securities legislation.
Forward-looking statements may include financial and other projections, as
well as statements regarding our future plans, objectives or economic
performance, or the assumptions underlying any of the foregoing. We use words
such as "may", "would", "could", "will", "likely", "expect", "anticipate",
"believe", "intend", "plan", "forecast", "project", "estimate" and similar
expressions to identify forward-looking statements. Any such forward-looking
statements are based on assumptions and analyses made by us in light of our
experience and our perception of historical trends, current conditions and
expected future developments, as well as other factors we believe are
appropriate in the circumstances. However, whether actual results and
developments will conform with our expectations and predictions is subject to
a number of risks, assumptions and uncertainties, including, without
limitation: the potential for an extended global recession, including its
impact on our liquidity; declining production volumes and sales levels; the
impact of government financial intervention in the automotive industry;
restructuring of the global automotive industry, including the bankruptcy of
Chrysler and the risk of the bankruptcy of other customers; the financial
distress of some of our suppliers and the risk of their insolvency, bankruptcy
or financial restructuring; restructuring and/or downsizing costs related to
the rationalization of some of our operations; impairment charges; shifts in
technology; our ability to successfully grow our sales to non-traditional
customers; a reduction in the production volumes of certain vehicles, such as
certain light trucks; our dependence on outsourcing by our customers; risks of
conducting business in foreign countries, including Russia, India and China;
our ability to quickly shift our manufacturing footprint to take advantage of
lower cost manufacturing opportunities; the termination or non-renewal by our
customers of any material contracts; disruptions in the capital and credit
markets; fluctuations in relative currency values; our ability to successfully
identify, complete and integrate acquisitions; our ability to offset price
concessions demanded by our customers; the continued exertion of pricing
pressures by our customers; warranty and recall costs; product liability
claims in excess of our insurance coverage; changes in our mix of earnings
between jurisdictions with lower tax rates and those with higher tax rates, as
well as our ability to fully benefit tax losses; other potential tax
exposures; legal claims against us; work stoppages and labour relations
disputes; changes in laws and governmental regulations; costs associated with
compliance with environmental laws and regulations; potential conflicts of
interest involving our indirect controlling shareholder, the Stronach Trust;
and other factors set out in our Annual Information Form filed with securities
commissions in Canada and our annual report on Form 40-F filed with the United
States Securities and Exchange Commission, and subsequent filings. In
evaluating forward-looking statements, readers should specifically consider
the various factors which could cause actual events or results to differ
materially from those indicated by such forward-looking statements. Unless
otherwise required by applicable securities laws, we do not intend, nor do we
undertake any obligation, to update or revise any forward-looking statements
to reflect subsequent information, events, results or circumstances or
otherwise.





For further information:

For further information: Vincent J. Galifi, Executive Vice-President and
Chief Financial Officer of Magna at (905) 726-7100


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890