Forward Looking Statements

Certain statements in this website constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements"). Any such forward-looking statements are intended to provide information about management's current expectations and plans and may not be appropriate for other purposes. Forward-looking statements may include financial and other projections, as well as statements regarding our future plans, strategic objectives or economic performance, or the assumptions underlying any of the foregoing, and other statements that are not recitations of historical fact. We use words such as "may", "would", "could", "should", "will", "likely", "expect", "anticipate", "believe", "intend", "plan", "aim", "forecast", "outlook", "project", "estimate", "target" and similar expressions suggesting future outcomes or events to identify forward-looking statements. The following table identifies the material forward-looking statements contained in this website, together with the material potential risks that we currently believe could cause actual results to differ materially from such forward-looking statements. Readers and listeners should also consider all of the risk factors which follow below the table:

Material Forward-Looking Statement Material Potential Risks Related to Applicable Forward-Looking Statement
Economic Impacts of Russian Invasion of Ukraine
  • Disruption of production in Russia
  • Lower industry production volumes and lower Magna sales
  • Higher energy, commodity, transportation/logistics and other input costs
  • Potential disruption of energy supply to Western European operations
  • Disruption of supply chains, including potential worsening of semiconductor chip shortage
  • Increasing cybersecurity threats
  • Potential asset impairment charges
  • Expropriation risks
Impact of the global semiconductor shortage
  • Risks related to OEM actions in response to the semiconductor chip shortage such as unplanned shutdowns of production lines and/or plants; reductions in OEM vehicle production plans; and changes to OEM product mix. These risks include:
  • Lower sales
  • Production inefficiencies due to production lines being stopped/restarted unexpectedly based on OEMs' production priorities
  • Premium freight costs to expedite shipments; and/or other unrecoverable costs
  • Skilled labour attraction/retention
  • Price increases from sub-suppliers that have been negatively impacted by production inefficiencies, premium freight costs and/or other costs related to the semiconductor chip shortage
Impact of energy shortages
  • Risks related to production shutdowns due to energy shortages/rationing. These risks include:
  • Lower sales
  • Higher energy costs
  • Premium freight costs to expedite shipments; and/or other unrecoverable costs
  • Price increases from sub-suppliers that have been negatively impacted by
  • Production inefficiencies, premium freight costs and/or other costs related to production shutdowns resulting from energy rationing
Impact of supply chain disruptions
  • Impact of COVID-19
Inflationary price increases
  • Commodity cost volatility
  • Increase in our cost structure as a result of inability to offset inflationary price increases through continuous improvement actions, price increases, adjustments to our own operations or otherwise
  • Price increases or surcharges from sub-suppliers in connection with inflationary pressures they face
  • Skilled labour attraction/retention
Impact of COVID-19
  • Risks related to mandatory stay-at-home orders/lockdowns, including in parts of China, which could impact vehicle sales, vehicle production and our own production
  • Economic impact of COVID-19 on consumer confidence
Light Vehicle Production
  • Light vehicle sales levels
  • Supply disruptions, including as a result of the current semiconductor chip shortage, COVID-19 related shutdowns, and/or Russia’s invasion of Ukraine
  • Production allocation decisions by OEMs
Total Sales
Segment Sales
  • Mandatory COVID-19 lockdowns/stay-at-home orders, including in certain parts of China, could impact vehicle sales, vehicle production and our own production
  • Economic impact of COVID-19 and/or Russia’s invasion of Ukraine on consumer confidence
  • Supply disruptions, including as a result of a semiconductor chip shortage, COVID-19 related shutdowns, and/or Russia’s invasion of Ukraine
  • Elevated levels of inflation
  • Regional energy shortages and price increases
  • Concentration of sales with six customers
  • Shifts in market shares among vehicles or vehicle segments
  • Shifts in consumer “take rates” for products we sell
Adjusted EBIT Margin
Segment Adjusted EBIT Margin
Net Income Attributable to Magna
  • Same risks as for Total Sales and Segment Sales above
  • Operational underperformance
  • Higher costs incurred to mitigate the risk of supply disruptions, including: materials price increases; higher-priced substitute supplies; premium freight costs to expedite shipments; production inefficiencies due to production lines being stopped/restarted unexpectedly based on customers’ production schedules; and price increases from sub-suppliers that have been negatively impacted by production inefficiencies
  • Price concessions
  • Commodity cost volatility
  • Higher labour costs
  • Tax risks
Equity Income
  • Same risks as Adjusted EBIT Margin and Net Income Attributable to Magna
  • Risks related to conducting business through joint ventures
Free Cash Flow
  • Same risks as for Total Sales/Segment Sales, and Adjusted EBIT Margin/ Net Income Attributable to Magna above

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. While we believe we have a reasonable basis for making any such forward-looking statements, they are not a guarantee of future performance or outcomes. In addition to the factors in the table above, whether actual results and developments 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, including, without limitation:

Risks Related to the Automotive Industry
  • economic cyclicality;
  • regional production volume declines;
  • intense competition;
  • potential restrictions on free trade;
  • trade disputes/tariffs;
Customer and Supplier Related Risks
  • concentration of sales with six customers;
  • emergence of potentially disruptive Electric Vehicle OEMs, including risks related to limited revenues/operating history of new OEM entrants;
  • OEM consolidation and cooperation;
  • shifts in market shares among vehicles or vehicle segments;
  • shifts in consumer "take rates" for products we sell;
  • dependence on outsourcing;
  • quarterly sales fluctuations;
  • potential loss of any material purchase orders;
  • a deterioration in the financial condition of our supply base;
Manufacturing/Operational Risks
  • risks arising from Russia’s invasion of Ukraine and compliance with the sanctions the regime imposed in response;
  • impact of the semiconductor chip shortages on OEM production volumes and on the efficiency of our operations;
  • risks related to COVID-19;
  • supply disruptions and higher costs to mitigate such disruptions;
  • regional energy shortages and price increases;
  • skilled labour attraction/retention;
  • product and new facility launch risks;
  • operational underperformance;
  • restructuring costs;
  • impairment charges;
  • labour disruptions;
  • climate change risks;
  • leadership succession;
IT Security/Cybersecurity Risk
  • IT/Cybersecurity breach;
  • Product Cybersecurity breach;
Pricing Risks
  • Inflationary pressures;
  • pricing risks between time of quote and award of new business;
  • price concessions;
  • commodity cost volatility;
  • declines in scrap steel/aluminum prices;
Warranty / Recall Risks
  • costs related to repair or replacement of defective products, including due to a recall;
  • warranty or recall costs that exceed warranty provision or insurance coverage limits;
  • product liability claims;
Acquisition Risks
  • competition for strategic acquisition targets;
  • inherent merger and acquisition risks;
  • acquisition integration risk;
Other Business Risks
  • risks related to conducting business through joint ventures;
  • our ability to consistently develop and commercialize innovative products or processes;
  • intellectual property risks;
  • our changing business risk profile as a result of increased investment in electrification and autonomous/assisted driving, including: higher R&D and engineering costs, and challenges in quoting for profitable returns on products for which we may not have significant quoting experience;
  • risks of conducting business in foreign markets;
  • fluctuations in relative currency values;
  • tax risks;
  • reduced financial flexibility as a result of an economic shock;
  • changes in credit ratings assigned to us;
Legal, Regulatory and Other Risks
  • antitrust risk;
  • legal claims and/or regulatory actions against us; and
  • changes in laws and regulations, including those related to vehicle emissions or made as a result of the COVID-19 pandemic.

In evaluating forward-looking statements or forward-looking information, we caution readers and listeners not to place undue reliance on any forward-looking statement. Additionally, readers and listeners should specifically consider the various factors which could cause actual events or results to differ materially from those indicated by such forward-looking statements, including the risks, assumptions and uncertainties above which are:

  • discussed under the “Industry Trends and Risks” heading of our Management’s Discussion and Analysis; and
  • set out in our Annual Information Form filed with securities commissions in Canada, our annual report on Form 40-F filed with the United States Securities and Exchange Commission, and subsequent filings.

Readers and listeners should also consider discussion of our risk mitigation activities with respect to certain risk factors, which can be also found in our Annual Information Form.