Magna International Inc. - OMEGA

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Magna Steyr’s primary customers are automobile manufacturers located in Europe, however, Magna Steyr recently commenced supplying automobile manufacturers in North America. Magna Steyr currently assembles four vehicles for DaimlerChrysler (Mercedes-Benz G-Class, E-Class 4MATIC and M-Class, as well as the Jeep Grand Cherokee) with a combined volume of over 80,000 vehicles per year at its facility in Graz, Austria. Magna Steyr is currently engineering, and will subsequently assemble in Graz, both the 2003 Saab 9 3 convertible and 2004 BMW X-3 sport activity vehicle. In North America, Magna Steyr manages the assembly of the pick-up box of the Lincoln Blackwood and is also performing vehicle modification services in respect of the General Motors “Sierra Pro” vehicle. Magna Steyr’s powertrain operations supply to a number of customers, including General Motors, Volkswagen, DaimlerChrysler, BMW, Land Rover, Fiat and Renault. Some of Magna Steyr’s current powertrain programs include the four-wheel drive transmission module for the Mercedes-Benz E-Class cars, power take-off units for the Renault Scenic and Rover Freelander sports utility vehicles, the rear suspension module for the Buick Rendezvous, as well as engine mass balancing systems for the BMW 3-Series 4 cylinder engines. Magna Steyr operates a joint venture with Intier in Hambach, France which produces complete door systems for the DaimlerChrysler Smart car, as well as the Advanced Car Technology Systems (ACTS) joint venture which focusses on total vehicle safety systems integration and supports Magna Steyr, Intier and third party suppliers in the development and testing of their respective systems and components. Magna Steyr and Cosma operate a joint venture in Europe which will develop hydroforming modules and independent rear suspension modules. Cosma International and Other Automotive Operations Cosma manufactures a comprehensive range of metal body systems, components, assemblies and modules and employs approximately 15,300 people in 37 manufacturing facilities and eight engineering and testing facilities (including a joint venture with Magna Steyr) located in Canada, the United States, Europe and Mexico. Cosma and Magna Steyr maintain a joint venture which will develop hydroforming modules and independent rear suspension modules. Our other automotive operations consist of our mirror systems operations conducted through Magna Mirror Systems, one of the largest mirror systems suppliers in the world. Magna Mirror Systems employs approximately 2,100 people at nine manufacturing facilities and two engineering and testing facilities in the United States, Germany, Austria, and the Slovak Republic. In calendar 2001, Cosma International and Other Automotive Operation’s sales were approximately $3,165 million and its operating income was approximately $365 million, representing approximately 30% of our consolidated automotive sales and approximately 43% of our consolidated operating income, respectively, in that year. Cosma’s main product and service segments are: • chassis systems; • stampings; • body systems; • finishing; • design and engineering; and • metalforming. Cosma has extensive engineering capabilities with respect to computer aided design and computer aided manufacturing, complete body engineering, failure effects analysis, prototyping, concept vehicles and testing. Cosma’s product engineering team creates original engineering drawings, feasibility studies, working prototypes and full-scale testing programs to meet or establish customer specifications. Manufacturing and engineering personnel design and build the manufacturing systems, processes and equipment which link the designed product to high quality, efficient production systems. The advance design engineering and/or prototyping work performed by Cosma can often facilitate the award of production business by automobile manufacturers to one or more of our other automotive systems groups. Tooling facilities within Cosma are capable of designing and building the tools, dies and assembly equipment needed for consistent production. 18
Technologies employed by Cosma include a series of metal processing technologies, including conventional stamping and extrusion, roll-forming, hydroforming, hydropiercing, tube to tube welding and technically advanced laser welding processes, as well as finishing technologies such as e-coating, powder coating and aluminum heat treating. Cosma’s primary customers include General Motors, DaimlerChrysler, BMW, Ford and Toyota. For example, Cosma supplies the hydroformed frames for General Motors’ GMT 800 series of large pick-up trucks and sport utility vehicles and has been sourced to supply hydroformed frames for an additional General Motors sport utility vehicle, as well as a DaimlerChrysler sport utility vehicle. Cosma also supplies radiator supports for the GMT 800 series of vehicles, Jaguar S-Type, DaimlerChrysler 300M and other vehicles, metal underbody stampings for the Ford Escape and Thunderbird and the Mazda Tribute, the complete bodyin-white for the BMW Z-3 sports car and metal stampings for a variety of vehicles including the Cadillac CTS, Toyota Camry, Mercedes-Benz Vaneo and Ford Mondeo. Magna Mirror Systems’ main product segments are: • interior and exterior mirrors; • mirror actuators and powerpacks; and • advanced mirror technologies. Through Magna Mirror Systems, we also possess significant in-house capabilities for the testing and validation of mirror systems. Magna Mirror Systems has a diverse customer base, which includes Volkswagen/Audi, BMW, DaimlerChrysler, General Motors, Honda, Jaguar, Land Rover and Toyota. For example, our mirrors divisions supply integrated turn signals for a number of Mercedes-Benz models including the C-Class, as well as exterior mirrors for the MINI Cooper, Acura MDX, Land Rover Freelander, Toyota Sequioa and Chrysler minivans. Corporate and Other Substantially all of our wholly-owned automotive real estate is owned through MI Developments Inc., a wholly-owned subsidiary. Long-term leases at fair market value have been signed by MI Developments and the applicable groups or divisions occupying our wholly-owned properties. MI Developments operates as a stand-alone profit centre and will design, construct and/or manage substantially all of our current and future wholly-owned automotive real estate. MAGNA ENTERTAINMENT CORP. MEC is the leading owner and operator of thoroughbred racetracks in the United States, based on revenue, and a leading supplier, via simulcasting, of live racing content to inter-track, off-track and account wagering markets. MEC operates eight thoroughbred racetracks, one standardbred racetrack and one greyhound racetrack, as well as the simulcast wagering venues at these tracks and has entered into an agreement to acquire the operations of an additional racetrack and related assets. In addition, MEC operates a number of off-track betting facilities and a national account wagering business known as XpressBet TM , which permits customers to place wagers by telephone and over the Internet on horse races at up to 65 racetracks in North America. As at December 31, 2001, MEC employed approximately 4,300 full-time employees, approximately 2,500 of whom were represented by unions. Shares of MEC’s Class A Subordinate Voting Stock are listed and quoted on the Nasdaq National Market under the trading symbol “MIEC” and are listed and posted for trading on The Toronto Stock Exchange under the trading symbol “MIE.A”. In addition, shares of MEC Holdings (Canada) Inc. (a subsidiary of MEC), each of which is exchangeable into one share of MEC Class A Subordinate Voting Stock, are listed and posted for trading on The Toronto Stock Exchange under the trading symbol “MEH”. In 2001, MEC’s sales were approximately $519 million and its operating income was approximately $23 million, representing approximately 5% of our consolidated sales and almost 3% of our consolidated operating income, respectively, in that year. Since December 1998, MEC has acquired four of the most prestigious racetrack operations in North America: Santa Anita Park near Los Angeles, Gulfstream Park near Miami, and Golden Gate Fields and Bay Meadows near San Francisco. MEC also owns the racetrack operations of The Meadows near Pittsburgh, Thistledown near Cleveland, Remington Park in Oklahoma City and Great Lakes Downs in Muskegon, Michigan. MEC owns all the land on which these racetracks are located, with the exception of 19
Page 1 and 2: Magna International Inc. Annual Inf
Page 3 and 4: ITEM 1. CORPORATE STRUCTURE ISSUER
Page 5 and 6: RECENT TRENDS IN THE AUTOMOTIVE IND
Page 7 and 8: them. As Tier 1 suppliers have succ
Page 9 and 10: OUR NON-AUTOMOTIVE BUSINESS STRATEG
Page 11 and 12: key vehicle area. At the same time,
Page 13 and 14: in March 2002, MEC entered into an
Page 15 and 16: Logistics Group, L.L.C. owns the re
Page 17: Tesma employs a wide variety of dif
Page 21 and 22: HUMAN RESOURCES As at December 31,
Page 23 and 24: The basis on which automobile manuf
Page 25 and 26: One of Intier’s customers is requ
Page 27 and 28: We are dependent on outsourcing by
Page 29 and 30: Delays in program launches or delay
Page 31 and 32: DIVIDENDS Holders of our Class A Su
Page 33 and 34: management positions, including as
Page 35 and 36: and executive management do not par
Page 37 and 38: - our financial statements as at an
Page 39 and 40: Bestop, Inc. 60% (1) - Delaware Vot
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