Production at Magna Steyr in Graz to start in 2017

GRAZ, Austria, Sept. 15, 2016 /CNW/ - Magna International Inc. announced today it will manufacture the new 5 Series sedan for the BMW Group at its contract vehicle assembly facility in Graz, Austria. The production, which is expected to begin in 2017, will be split with BMW Group's manufacturing plant in Dingolfing, Germany.

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"We are proud to continue our longstanding partnership with the BMW Group," says Günther Apfalter, President of Magna Europe and Magna Steyr. "The new collaboration emphasizes our customer's continued trust in our contract manufacturing capability and our unmatched leadership position in this area."

"In the last 15 years of our collaboration, Magna has proven to be a trusted partner with expertise in world-class production capabilities. Therefore, Magna is exactly the right choice to share production of our new BMW 5 Series," explains Oliver Zipse, BMW AG Board of Management member for Production.

The successful strategic partnership between Magna and the BMW Group began in 2001. Magna started manufacturing the BMW X3 in 2003, followed by the MINI Countryman in 2010 and the MINI Paceman in 2012. The new BMW 5 Series will succeed the two MINI vehicles.

With new business awards from BMW and JLR starting production in 2017, and a contract extension on the Mercedes-Benz G-Class, Magna's Graz facility is expected to reach approximately 200,000 vehicles per year by 2018.

About Magna

We are a leading global automotive supplier with 309 manufacturing operations and 99 product development, engineering and sales centres in 29 countries. We have over 152,000 employees focused on delivering superior value to our customers through innovative products and processes, and World Class Manufacturing. We have complete vehicle engineering and contract manufacturing expertise, as well as product capabilities which include body, chassis, exterior, seating, powertrain, electronic, active driver assistance, vision, closure and roof systems.  Our common shares trade on the Toronto Stock Exchange (MG) and the New York Stock Exchange (MGA). For further information about Magna, visit our website at www.magna.com.

FORWARD‑LOOKING STATEMENTS

This press release contains statements that constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation, including, but not limited to, statements relating to expected timing for start of production of the BMW 5-series and anticipated total production volume for all vehicles at Magna Steyr's Graz assembly plant by 2018. The forward-looking information in this document is presented for the purpose of providing information about management's current expectations and plans and such information may not be appropriate for other purposes. 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, and other statements that are not recitations of historical fact. We use words such as "expect", "may", "would", "could", "should", "will", "likely", "anticipate", "believe", "intend", "plan", "forecast", "outlook", "project", "estimate" and similar expressions suggesting future outcomes or events to identify forward-looking statements. Any such forward-looking statements are based on information currently available to us, and 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, many of which are beyond our control, and the effects of which can be difficult to predict, including, without limitation: the potential for a deterioration of economic conditions or an extended period of economic uncertainty; declines in consumer confidence and the impact on production volume levels; fluctuations in relative currency values; continuing global or regional economic uncertainty; the potential impact of the United Kingdom's anticipated exit from the European union; our ability to successfully launch material new or takeover business; underperformance of one or more of our applicable operating divisions;  shifts in market share away from our top customers; shifts in market shares among vehicles or vehicle segments, or shifts away from vehicles on which we have significant content; inability to sustain or grow our business; a prolonged disruption in the supply of components to us from our suppliers; work stoppages and labour relations disputes; a reduction in outsourcing by our customers or the loss of a material production or assembly program; the termination or non-renewal by our customers of any material production purchase order; restructuring actions by OEMs, including plant closures; shutdown of our or our customers' or sub-suppliers' production facilities due to a labour disruption; risk of production disruptions due to natural disasters or catastrophic event; the security and reliability of our information technology systems; 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, we caution readers not to place undue reliance on any forward-looking statements and 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.

SOURCE Magna International Inc.

Copyright 2016 Canada NewsWire

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