Broaden Customer Base

As global OEM market shares continue to shift, we are focused on further improving our customer sales diversification to better balance it relative to global OEM production.

Expanding into New Markets

Industry expectations are for considerable growth over the next number of years in total global vehicle production. The majority of this growth is expected to come from both the Asia Pacific region (in particular China and Southeast Asia) and Central and Eastern Europe. These are key markets that we are focused on and which we believe will aid in broadening our customer base.

Leveraging Innovation and Technology

We continue to focus on technological innovation across all of our product areas to enhance the vehicles produced by our customers. We believe that our broad product portfolio and our ability to harness our capabilities set us apart from our peers. We continue to develop not just products but also processes that improve all aspects of our customers' vehicles from function, form and aesthetics to cost.

Outsourcing Opportunities

For many years now, automobile manufacturers have increased their outsourcing of components, assemblies, modules and systems. The primary factors driving this outsourcing have been the need by OEMs to reduce costs, minimize the time required to bring a new vehicle to market, capitalize on the technical and engineering expertise of suppliers and minimize capital expenditures. This has increasingly resulted in OEMs outsourcing production of larger assemblies and modules to suppliers including Magna. With our broad and deep capabilities in design, engineering, testing, manufacturing, program management and system integration, we are well positioned to continue to capitalize on the outsourcing trends.

Process and Discipline

We continue to emphasize process and discipline in three broad areas including innovation, product development and world class manufacturing. With respect to innovation, this means making investments in new technology that will maintain or widen our competitive edge, but with clear, stated objectives in mind. In terms of product development we are referring to properly monitoring our progress from program award through to launch, to ensure engineering optimization, maximize commonality, minimize testing costs, and ensure quality, launch readiness and profitability in manufacturing. And with respect to world class manufacturing, we are utilizing the latest manufacturing techniques, emphasizing state of the art equipment design, ensuring quick die changes, and optimizing purchasing to deliver low cost, high quality parts. We believe that a relentless focus on this process-oriented and disciplined approach in these areas, along with attracting and retaining the best people in all areas of our business, will ensure our continued strong performance.