Auto supplier announces 2002 business outlook

Magna International Inc. says it expects production cutbacks together with OEM price concessions to have a negative impact on sales and profits for 2002. According to a recent news release, the company expects full-year 2002 average dollar content per vehicle to range between $425 and $445 in North America, and between $210 and $230 in Europe. The company projects full-year 2002 production volumes of approximately 15.3 million units in North America and 15.9 million units in Europe, resulting in an estimated total sales figure for 2002 in the range of $10.8 billion to $11.6 billion. Additionally, Magna expects to spend between $650 million to $700 million in 2002 for fixed assets in its automotive business.
Magna has 168 manufacturing operation and 33 product development and engineering centres in 18 countries.