Magna Clarifies Position on Battery Plant Investment Reports

Magna International Inc. has issued certain points of clarification in response to recent media reports regarding Magna’s potential future investment in battery plants.

Siegfried Wolf, Magna’s co-chief executive officer stated: “We believe that the market for hybrid and electric vehicles will continue to grow and we hope to capitalize on the opportunities that such growth could provide to capable suppliers. We are reviewing with potential joint venture partners some of the opportunities available, including opportunities to supply batteries for hybrid and electric vehicles. At this point, other than our current contract to supply battery packs to a European OEM, Magna has not been awarded any such battery business, either directly or through a potential joint venture partner. Any investment in battery manufacturing by Magna, or a potential joint venture involving Magna, would first require a number of conditions to be met, including but not limited to: sufficient market demand to justify the business case for investment, conclusion of joint venture terms with technology partners, availability of financing, commercialization of related technologies, and the settlement of customer supply terms, including pricing and warranty matters.”

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