Magna Announces Outlook and Regulatory Update

                Magna Announces Outlook and Regulatory Update

  PR Newswire

  AURORA, Ontario, January 16, 2013

AURORA, Ontario, January 16, 2013 /PRNewswire/ --

Magna International Inc. (TSX: MG), (NYSE: MGA) today announced its financial
outlook for 2013. All amounts are in U.S. dollars.

Don Walker, Magna's Chief Executive Officer commented: "Our outlook reflects
the progress we are making in expanding Magna's business outside of our
traditional markets. Our growing footprint in high growth markets, combined
with our strong positions in North America and Europe, further enhances our
ability to support our customers on global platforms. In Europe, our recent
focus has been on improving operations and bottom-line results. We have made
progress and continue to implement restructuring actions that we believe
should contribute over time to further improvement in our future European
financial results."


    Light Vehicle Production (Units)

                  North America              15.3 million
                  Western Europe             12.0 million
    Production Sales
                  North America              $15.3 billion - $15.7 billion
                  Europe                     $9.0 billion - $9.3 billion
                  Rest of World              $2.2 billion - $2.5 billion
                  Total Production Sales     $26.5 billion - $27.5 billion
    Complete Vehicle Assembly Sales          $2.5 billion - $2.8 billion
    Total Sales                              $31.3 billion - $32.7 billion
    Operating Margin(*)(**)                  Mid 5% range
    Tax Rate*                                Approximately 24.5%
    Capital Spending                         Approximately $1.4 billion

    *  Excluding other expense/income, net (unusual items)
    ** Excluding $158 million amortization of intangibles related to acquisition of E-Car

In addition to our 2013 sales outlook above, we expect an increase in total
production sales over the two-year period from 2013 to 2015 of approximately
$2.2 billion, based on assumed full year 2015 light vehicle production volumes
of approximately 16.7 million units in North America and approximately 12.8
million units in Western Europe. We expect the increase in total production
sales to be split approximately as follows by segment: 70% in North America
and 40% in Rest of World, offset by a 10% decline in Europe.

In this outlook we have assumed no material acquisitions or divestitures. In
addition, we have assumed that foreign exchange rates for the most common
currencies in which we conduct business relative to our U.S. dollar reporting
currency will approximate year end 2012 rates.


Magna also announced that the previously disclosed investigation by the United
States Department of Justice ("DoJ") into certain practices relating to the
Company's tooling sales has been concluded without any action being taken by
the DoJ.

ABOUT MAGNA We are a leading global automotive supplier with 313 manufacturing
operations and 88 product development, engineering and sales centres in 29
countries. Our over 118,000 employees are focused on delivering superior value
to our customers through innovative processes built on World Class
Manufacturing processes. Our product capabilities include body, chassis,
interiors, exteriors, seating, powertrain, electronics, mirrors, closures and
roof systems and modules, as well as complete vehicle engineering and contract
manufacturing. 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 .

FORWARD LOOKING STATEMENTS This press release may contain statements that, to
the extent that they are not recitations of historical fact, constitute
"forward-looking information" or "forward-looking statements" within the
meaning of applicable securities legislation, including, but not limited to,
Magna's: forecasts of light vehicle production in North America and Western
Europe; expected consolidated sales, based on such light vehicle production
volumes; production sales in its North America, Europe and Rest of World
segments, including for years beyond 2013; complete vehicle assembly sales;
consolidated operating margin; effective income tax rate; fixed asset
expenditures; implementation of action plans and operating results improvement
in Europe; growth of our business outside of traditional markets and expansion
in high growth regions . 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", "should" "will",
"likely", "expect", "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 to 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. These risks,
assumptions and uncertainties include, without limitation, the impact of: 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; risks arising from uncertain economic conditions in
Europe, including the potential for a deterioration of sales of our three
largest German-based OEM customers; restructuring actions by OEMs, including
plant closures; restructuring, downsizing and/or other significant
non-recurring costs; continued underperformance of one or more of our
operating divisions; our ability to successfully launch material new or
takeover business; liquidity risks; risks arising due to the failure of a
major financial institution; bankruptcy or insolvency of a major customer or
supplier; a prolonged disruption in the supply of components to us from our
suppliers; scheduled production shutdowns of our customers' production
facilities (typically in the third and fourth quarters of each calendar year);
shutdown of our or our customers' or sub-suppliers' production facilities due
to a labour disruption; our ability to successfully compete with other
automotive suppliers; 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; a shift away from
technologies in which we are investing; impairment charges related to
goodwill, long-lived assets and deferred tax assets; 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;
risks of conducting business in foreign markets, including China, India,
Brazil, Russia and other non-traditional markets for us; exposure to, and
ability to offset, volatile commodities prices; fluctuations in relative
currency values; our ability to successfully identify, complete and integrate
acquisitions or achieve anticipated synergies; ongoing pricing pressures,
including our ability to offset price concessions demanded by our customers;
warranty and recall costs; our ability to understand and compete successfully
in non-automotive businesses in which we pursue opportunities; risks related
to natural disasters and potential production disruptions; factors that could
cause an increase in our pension funding obligations; 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 and/or regulatory actions against us; the
unpredictability of, and fluctuation in, the trading price of our Common
Shares; work stoppages and labour relations disputes; changes in credit
ratings assigned to us; changes in laws and governmental regulations; costs
associated with compliance with environmental laws and regulations; risks
related to the electric vehicle industry; 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

For further information: Vince Galifi, Executive Vice-President and Chief
Financial Officer at +1-905-726-7100 or Louis Tonelli, Vice-President,
Investor Relations at +1-905-726-7035.
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