Magna Announces that Russian Machines' participation in arrangements with the Stronach Trust has terminated

    AURORA, ON, Oct. 3 /CNW/ - Magna International Inc. (TSX: MG.A, NYSE:  
MGA) announced that it has been advised that the lender to a wholly-owned
subsidiary of OJSC Russian Machines ("Russian Machines") has realized against
the 20 million Magna Class A Subordinate Voting Shares pledged as security for
the financing obtained by Russian Machines for its September 20, 2007
investment in Magna. Accordingly, Russian Machines' participation in the
arrangements entered into with the Stronach Trust in connection with this
investment has terminated.

    As a result of the termination of these arrangements, among other things:

    -   up to 20 million Magna Class A Subordinate Voting Shares will be
        disposed of at the direction of Russian Machines' lender;

    -   Russian Machines will cease to be an indirect shareholder of M Unicar
        Inc., the holding company formed to hold the Magna shares of the
        Stronach Trust, Russian Machines and certain members of Magna's

    -   M Unicar Inc. will continue to be indirectly controlled by the
        Stronach Trust, and following the sale of the 20 million Magna
        Class A Subordinate Voting Shares, will continue to own all of the
        outstanding 726,829 Magna Class B Shares, as well as 605,000 Magna
        Class A Subordinate Voting Shares, representing approximately 66% of
        all votes attributable to both classes of shares; and

    -   Russian Machines will cease to be an indirect shareholder in the
        European company through which Frank Stronach provides consulting
        services in relation to Magna's business outside Canada and Austria.

    "Our strategic alliance with Russian Machines has assisted us in
accelerating our growth in the Russian market," said Siegfried Wolf, Magna's
Co-Chief Executive Officer. "We have a good working relationship with 
Oleg Deripaska and the Basic Element group, including Russian Machines and its
controlled subsidiary, GAZ Group, Russia's second largest automotive company.
We believe that the Russian market still holds significant opportunities for
us and intend to continue to pursue joint opportunities with Russian Machines
and GAZ, as well as other opportunities to advance our position in Russia."

    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
    We have approximately 82,000 employees in 241 manufacturing operations
and 62 product development and engineering centres in 23 countries.


    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, to the impact of: shifting OEM
market shares; 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,
including Russia; the risk that the growth prospects expected to be realized
in Russia and other markets may not be fully realized, may take longer to
realize than expected or may not be realized at all; 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: about this press release, please contact Vince
Galifi, Executive Vice President and Chief Financial Officer of Magna at (905)

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