North American Manufacturing RevivalA Tale of Two CountriesScott Paradise

Reindustralization of North America and the Role of Clusters

12 November 2014

N.A. Manufacturing Revival A Tale of Two Countries

Scott ParadiseVice PresidentMarketing and New Business Development, Americas

04/15/2023 Disclosure or duplication without consent is prohibited 3

Automotive IndustryA world of manufacturing innovation

Global Presence

Disclosure or duplication without consent is prohibited 4

~ 130,000 People | 29 Countries | 317 83 | $34.8 Billion (2013 Sales)

(@ Q2 2014)

Canada20,200

46

9

USA23,225

63

12

Mexico24,050

30

1

South America4,775

13

2Africa

50

44

20Asia

11,300

36

2Eastern Europe

13,150

Western Europe33,550

84

37

Manufacturing/Assembly

Engineering/Product Development/Sales

Number of Employees

1

04/15/2023

04/15/2023 Disclosure or duplication without consent is prohibited 5

Global Capabilities

vehicle assembly

engineering + services

product systems

Roof SystemsExteriors

Interiors

Vision Systems

Seating

ElectronicsPowertrain

Body & Chassis

Closures

Fuel & Battery Systems

Investing in New Facilities

“40 New Facilities”

Region 2012-2015

N.A.United States 11

Mexico 4

EuropeWestern Europe 3

Eastern Europe 8

ROW

China 8

South America 1

India 5

TOTAL 40

7

Automaker Investment

Automakers chase low costs,

and as a supplier,

we follow our customers…

04/15/2023 8

United States

• Low fuel prices boosting demand for trucks

and sport-utility vehicles• Low interest rates, stable economic

conditions, rising consumer confidence• Volumes returning to pre-recession levels• Pent-up demand will continue to drive sales

vehicle production in millionsData source: IHS Automotive

2012

2013

2014

2015

2016

2017

2018

2019

2020

10,114,881.0 10,872,227.0

11,433,521.0 11,797,357.0 12,165,912.0 12,275,506.0 12,426,364.0 12,395,548.0 12,303,011.0

Production ForecastGrowth Drivers

04/15/2023 Disclosure or duplication without consent is prohibited 9

U.S. Growth

04/15/2023 Disclosure or duplication without consent is prohibited 10

U.S. Southern States

04/15/2023 11

New Magna Plants in Michigan

2009 2014

4,600

10,100

Magna Employees in MichiganNew Magna Plants in Michigan

04/15/2023 12

Mexico Automotive Industry Overview

• New government, success attracting OEM investment:

VW, Audi, Nissan, Mazda

• Exports primarily to U.S. and Canada

• On course to produce 4 million vehicles per year

• Volkswagen Jetta Hybrid vehicles (below) are loaded

onto a car carrier at the Port of Veracruz.

vehicle production in millionsData source: IHS Automotive

2012

2013

2014

2015

2016

2017

2018

2019

2020

2,865,872.0 2,926,860.0 3,194,778.0

3,365,240.0 3,511,674.0

4,093,390.0 4,292,097.0

4,685,999.0 4,808,638.0

Production ForecastGrowth Drivers

Magna in Mexico

13

23,450Employees

TodayHistorical Facts

30 Manufacturing

Facilities

1Engineering

Center

8States

Stampings & Assemblies

First Products

1991First Facility

Puebla, Mexico

VWFirst Customer

400Employees

Magna Mexico Footprint

14

Acuna•Magna Seating

Sabinas•Magna Seating

Monterrey

Saltillo•Magna Exteriors & Interiors•Magna Seating•Magna Closures

Ramos Arizpe•Cosma•Magna Powertrain

Toluca

Puebla

Matamoros

Cuautitlan Izcalli

San Luis Potosi

Celaya

Manufacturing – 30 Engineering/Product Development/Sales – 1 People 23,450

+ Shared Location

Guadalupe

Silao

AcunaMagna Seating

SabinasMagna Seating

MonterreyMagna MirrorsMagna Powertrain

SaltilloMagna ExteriorsMagna InteriorsMagna SeatingMagna Closures

Ramos ArizpeCosmaMagna Powertrain

TolucaCosmaMagna Exteriors (+)Magna Interiors Magna Steyr (+)

PueblaCosma

HermosilloCosmaMagna Exteriors

MatamorosMagna Closures

Cuautitlan IzcalliCosma Magna Exteriors

San Luis PotosiCosmaCelaya

Magna Exteriors

GuadalupeMagna Electronics

SilaoCosma

22

Manufacturing/AssemblyEngineering/Product Development/Sales

In Progress Facility

14

5

6

1

2

2

1

1

2

1

1 1

1

Vehicle Segment & Products

15

• Stampings

• Soft Top Assemblies

• Window regulators

• Exterior trim

• Mirrors

• Transmission parts

• Fascias

• Interior & exterior lighting

• Class A

• Cargo Management Systems

• Front End Modules (FEM)

• Complete interiors less the seats

• Seat trim covers

• Latches

• Window encapsulation

• Transfer cases

• Seat mechanisms

• Light & heavy duty frames

• Soft Tonneau Assemblies

• Rear suspension modules

• Running boards

• Overhead systems

• Grilles

• Cockpit systems

• Spoilers

• BIW modules

• Seat structures

• Door modules

• Power liftgates

PRODUCTS MANUFACTURED IN MEXICO

A SEGMENT MCU FULL FRAMEC/D SEGMENTB SEGMENT

04/15/2023 Disclosure or duplication without consent is prohibited 16

Helping Strengthen the Mexico Automotive Sector

Collaboration• Establishing partnerships with the Government to

help strengthen the automotive sector

Supplier Development• Establishing partnerships with the Government to

help strengthen the supply base

Supply Chain• Strengthen supply chain and production in the

automotive sector

Local Technology• Reduce the purchase of foreign technology

Human Capital• Advanced training in Mexico and abroad

04/15/2023 Disclosure or duplication without consent is prohibited 17

Magna Investments

Invested $300Mand created

1,600 new jobssince Dec. 1, 2012

Impacts Areas Directly and Indirectly

18

Collaboration with Local Universities• Development of Human Resources

Equipment for Dual Education Schools• Tooling, Robotic and Mechatronic

Establishment of Centersof Innovation and Engineering• Magna Engineering Center

Suppliers Development• PyMES to increase local content

04/15/2023 19