OBERWALTERSDORF, Austria, February 26, 2009 - Magna Steyr, an operating unit of Magna International Inc., announced today that it has signed an agreement with Daimler AG to extend the Mercedes-Benz G-Class production at Magna Steyr in Graz, Austria until 2015.
Magna Steyr is currently producing the Mercedes-Benz G-Class in convertible, three-door and five-door versions as well as custom-built models. The G-Class, which has been produced in Graz for over 30 years with an overall production volume of approximately 200,000 vehicles, remains popular with consumers and governments. In November of last year Mercedes-Benz accepted an order from the Australian Government for 1,200 G-Class vehicles in various versions for their army fleet.
"This program extension is clear evidence of Magna's stability", stated Siegfried Wolf, Co-CEO of Magna International. "Magna has one of the strongest balance sheets in the supply industry with a net cash position of US$ 1.5 bn. This allows us to further strengthen Magna for the future. Our strong basis is also appreciated by our customers as they recognize Magna as a solid, long-term and reliable partner."
"Furthermore this extension underlines the quality and competitiveness of Magna Steyr," Mr. Wolf added. "We are very excited about this, especially for our employees because it is their achievements that made it possible to secure this successful outcome following intensive negotiations with our partner Daimler AG. I would also like to thank Daimler AG for their continued confidence in us - something which is very important in view of the difficult phase in which the automotive industry currently finds itself. The G-Class also has a high symbolic value for automotive manufacturing in Styria, having been produced in Graz for over 30 years. This extension is therefore also an important and very positive signal for the automotive industry in Styria."