Mr. Mike Bisson reports

MAGNA FORMS SEATING JOINT VENTURE IN CHINA

Magna International Inc. and Chongqing Hongli Zhixin Automotive Parts Manufacture Co. Ltd. have signed a 50/50 joint venture agreement to provide complete seating systems and seating components to Changan Ford and other customers in China.

Hongli Zhixin, a leading independent seating supplier in China with capabilities in foam, trim and structures, as well as established OEM (original equipment manufacturer) customers, brings its manufacturing facility in Harbin and two production programs to the JV. A Hongli Zhixin-Magna headquarters will be located in Chongqing.

This JV is expected to strengthen Magna's position in China by providing additional regional knowledge of customer and market expectations, enhancing the competitiveness of its cost structure through vertical integration and facilitating faster response times.

Mike Bisson, president of Magna Seating, said: "Hongli Zhixin, with their strong position in the Chinese seating market, represents a strategic partner for us in China. The combination of our global seating expertise and their knowledge of the Chinese market delivers a unique value proposition that ultimately positions both companies for future growth opportunities."

Wang Zhonglian, chairman of Hongli Zhixin said, "Combining Hongli Zhixin's local knowledge with Magna Seating's global network and world-class manufacturing, I am convinced that our joint venture will provide superior values to our customers to support their growth in China."

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