Chrysler Group and Magna Announce Collaboration in Unique Toledo South Manufacturing Project

Magna joins Chrysler Group’s Supplier Park to support 2007 Jeep® Wrangler production

Auburn Hills, Mich./Aurora, Ontario, Jun 5, 2006 –

Chrysler Group and Magna International Inc., today announced that they will collaborate in a unique Supplier Park project in Toledo. Within this collaboration, Magna, through its Magna Steyr operations will manage and operate the paint shop facility at Chrysler Group’s new Toledo South Assembly Plant. The plant will start production of the 2007 Jeep® Wrangler in the third quarter of this year.

As part of Chrysler Group’s innovative manufacturing project in Toledo, three supplier partners will manage and operate major parts of the vehicle production process from facilities within the Toledo South plant footprint. While Magna Steyr will run the paint shop, the Kuka Group is responsible for building bodies for the 2007 Jeep Wrangler and Hyundai Mobis-owned Ohio Module Manufacturing Company (OMMC) will assemble the vehicle’s chassis. Chrysler Group has the responsibility for the final trim and assembly operations of the plant. All four facilities were completed earlier this year and have been producing pilot parts since April.

“We are very pleased that Magna is joining this new supplier model in Toledo,” said Peter Rosenfeld, Executive Vice President – Procurement & Supply, Chrysler Group. “Magna is one of our top-performing partners measured against Chrysler Group’s four key value drivers: quality, technology, cost and supply. In addition, Magna Steyr is familiar with our production processes and standards since its Graz (Austria) assembly plant builds and paints several Chrysler Group models for international markets.”

“We are happy to be a part of the Supplier Park project,” said Manfred Remmel, President, Magna Steyr. “Operating the Toledo paint shop facility builds on our relationship with Chrysler in producing complete vehicles and strengthens Magna Steyr’s capabilities in North America.”

The co-location project between the three supplier partners and Chrysler Group in Toledo is a unique kind of vehicle manufacturing operation in North America and part of a $2.1 billion total program investment into Chrysler Group’s Toledo assembly operations. The supplier park represents one example of the Chrysler Group’s overall flexible manufacturing strategy, which involves a number of actions that enable multiple products to be built on the same assembly line; the ability to react quickly to changing market demands; and alternative practices to traditional vehicle assembly.

Magna, through Magna Steyr, is the automotive industry’s leading independent assembler of derivative, specialty and other vehicles for automotive manufacturers. Magna Steyr has operations in Europe, North America and Asia with headquarters in Graz (Austria). Within its existing partnership with the Chrysler Group, Magna Steyr builds the Chrysler 300C, Chrysler Town & Country, Jeep Grand Cherokee and Jeep Commander for international markets, including paint shop operations for these vehicles.

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