Magna to build MINI Sports Activity Vehicle for BMW Group



    AURORA, ON, Dec. 7 /CNW/ - Magna International Inc. (TSX: MG.A, NYSE:  
MGA) confirmed that, as announced by BMW Group earlier this week, its Magna
Steyr unit will be responsible for serial development and production of the
MINI Sports Activity Vehicle (SAV). At current exchange rates, Magna expects
its annualized sales associated with the program to be in excess of US $1
billion, once the program reaches full production. The MINI SAV will be the
second new vehicle program produced by Magna Steyr for BMW Group. Magna Steyr
has been the sole production source of the BMW X3 since the launch of the
vehicle in 2003, and expects to continue to produce the X3 until the end of
the current vehicle program.
    Siegfried Wolf, Magna's co-Chief Executive Officer stated: "This is a
huge recognition of the work that Magna Steyr has achieved so far through its
partnership with BMW Group. Above all, I'm delighted for our employees, as
this will allow us to set another milestone in our long-running and successful
cooperation with BMW Group. As we have done before, we will work on this
vehicle program with our fullest commitment to ensure that we meet BMW Group's
high expectations."
    We are the most diversified automotive supplier in the world. We design,
develop and manufacture automotive systems, assemblies, modules and
components, and engineer and assemble complete vehicles, primarily for sale to
original equipment manufacturers of cars and light trucks in North America,
Europe, Asia, South America and Africa. Our capabilities include the design,
engineering, testing and manufacture of automotive interior systems; seating
systems; closure systems; metal 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 83,000 employees in 240 manufacturing operations
and 62 product development and engineering centres in 23 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. These risks, assumptions and
uncertainties include, without limitation, those related to the strategic
alliance with OJC Russian Machines ("Russian Machines"), including: the risk
that the benefits, growth prospects and strategic objectives expected to be
realized from the investment by, and strategic alliance with, Russian Machines
may not be fully realized, realized at all or may take longer to realize than
expected; we will be governed by a board of directors on which the Stronach
Trust and Russian Machines each, indirectly, have the right to designate an
equal number of nominees, in addition to the current co-chief executive
officers, with the result that we may be considered to be effectively
controlled, indirectly, by the Stronach Trust and Russian Machines for so long
as the governance arrangements remain in place between them; our Russian
strategy involves making investments and carrying on business and operations
in Russia, which will expose us to the political, economic and regulatory
risks and uncertainties of that country; the possibility that Russian Machines
may exercise its right to withdraw its investment and exit from the governance
arrangements in connection with the strategic alliance at any time after two
years; the possibility that the Stronach Trust may exercise its right to
require Russian Machines to withdraw its investment and exit from such
arrangements at any time after three years; and the possibility that Russian
Machines' lender may require Russian Machines to withdraw its investment and
exit from such arrangements at any time if such lender is entitled to realize
on its loan to Russian Machines. In addition to the risks, assumptions and
uncertainties related to our relationship with Russian Machines, there are
additional risks and uncertainties relating generally to us and our business
and affairs, including the impact of: declining production volumes and changes
in consumer demand for vehicles; a reduction in the production volumes of
certain vehicles, such as certain light trucks; the termination or non-renewal
by our customers of any material contracts; our ability to offset increases in
the cost of commodities, such as steel and resins, as well as energy prices;
fluctuations in relative currency values; our ability to offset price
concessions demanded by our customers; our dependence on outsourcing by our
customers; our ability to compete with suppliers with operations in low cost
countries; 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; the financial distress of some of
our suppliers and customers; the inability of our customers to meet their
financial obligations to us; our ability to fully recover pre-production
expenses; warranty and recall costs; product liability claims in excess of our
insurance coverage; expenses related to the restructuring and rationalization
of some of our operations; impairment charges; our ability to successfully
identify, complete and integrate acquisitions; risks associated with program
launches; legal claims against us; risks of conducting business in foreign
countries; 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 shareholders, the Stronach Trust and Russian Machines; 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: about this press release, please contact
Vincent J. Galifi, Magna's Executive Vice President and Chief Financial
Officer at (905) 726-7100


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