Chattanooga, TN (April 5, 2010) – Magna Seating, an operating group of Magna International, and Hollingsworth International, a leading provider of industrial supply chain management, announced they have formed a joint venture, called Chattanooga Seating Systems, to supply Volkswagen Group of America (VWGoA) with complete seat systems for the mid-size sedan to be built at Volkswagen’s new Chattanooga, Tennessee, assembly facility.
"This partnership is a great sign of things to come for everyone involved," said Frank Fischer, President and CEO for Volkswagen in Chattanooga. "We are pleased that a minority-owned joint venture will be a part of our supplier team for the all-new mid-size sedan and that the addition of 120 jobs will continue to strengthen the economy here in the Tennessee Valley," Fischer said.
The joint-venture company, Chattanooga Seating Systems (CSS), is 51 percent owned by Hollingsworth Logistics and 49 percent Magna Seating. The JV combines Hollingsworth’s expertise in sequencing and delivery of products and Magna Seating’s proven expertise in the design, engineering and manufacture of automotive seating systems. CSS will be a minority supplier to Volkswagen by virtue of Hollingsworth’s status as a Native American-owned company.
Steven Barr, Owner and CEO of Hollingsworth Logistics Group stated, "We are very proud of our long-standing relationship with Magna and we look forward to adding CSS to our two existing joint-ventures. We have been partners with Magna for the past ten years and look forward to working together to provide Volkswagen with outstanding service and a best-in-class product."
"This joint venture strategically positions both companies for continued growth in North America," said Joe Pittel, President of Magna Seating. "We look forward to working together with Hollingsworth, leveraging each other’s strengths and delivering innovative seating solutions to Volkswagen."
As a newly formed company in Tennessee, Chattanooga Seating Systems worked closely with city, county and state government officials to take advantage of business-friendly incentives being offered to many of the suppliers establishing new operations in support of VWGoA’s new facility.
"We’re pleased to join Volkswagen in welcoming Chattanooga Seating Systems as the second major auto supplier to set up shop in Hamilton County to support the new assembly plant," said Hamilton County Mayor Claude Ramsey.
About Hollingsworth Logistics
Hollingsworth Logistics Group is a certified minority Native American company which has provided logistics support to the automotive industry for over 25 years. Our core strengths include the analysis of material flow; warehousing; assembling and modifying subassembly components; packaging and kitting; sequencing and metered flow facilitation; parts distribution; reverse logistics including core evaluation and disposition, and both inbound and outbound transportation management.
About Magna Seating
Magna Seating is an innovative leader in the development and manufacture of high-quality complete seat solutions and seat mechanisms for the global automotive industry. Our capabilities range from consumer and market research, full concept development, design and engineering, testing and validation to world-class manufacturing of seating components and complete seat assemblies.
About Magna International
Magna International (www.magna.com) is the most diversified global automotive supplier. We design, develop and manufacture technologically advanced automotive systems, assemblies, modules and components, and engineer and assemble complete vehicles, primarily for sale to original equipment manufacturers (OEMs) of cars and light trucks. Our capabilities include the design, engineering, testing and manufacture of automotive interior systems; seating systems; closure systems; body and chassis systems; vision systems; electronic systems; exterior systems; powertrain systems; roof systems; hybrid and electric vehicles/systems as well as complete vehicle engineering and assembly.
We have approximately 72,500 employees in 238 manufacturing operations and 79 product development and engineering centers in 25 countries.
The previous discussion contains statements that constitute "forward-looking statements" within the meaning of applicable securities legislation, including, but not limited to, statements relating to Magna’s expected consolidated sales, based on expected light vehicle production in North America and Europe, North American and European average dollar content per vehicle, complete vehicle assembly sales and fixed asset expenditures. The forward-looking information in this Press Release is presented for the purpose of providing information about management's current expectations and plans and such information may not be appropriate for other purposes. Forward-looking statements may include financial and other projections, as well as statements regarding our future plans, 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", "forecast", "outlook", "project", "estimate" and similar expressions suggesting future outcomes or events to identify forward-looking statements. Any such 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. However, whether actual results and developments will conform with 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: the potential for a slower than anticipated economic recovery or a deterioration of economic conditions; low production volumes and sales levels; the financial condition and credit worthiness of some of our OEM customers, including the potential that such customers may not make, or may seek to delay or reduce, payments owed to us; the financial condition of some of our suppliers and the risk of their insolvency, bankruptcy or financial restructuring; the highly competitive nature of the automotive parts supply business; our dependence on outsourcing by our customers; the termination or non renewal by our customers of any material contracts; our ability to identify and successfully exploit shifts in technology; restructuring, downsizing and/or other significant non-recurring costs; impairment charges; our ability to successfully grow our sales to nontraditional customers; unfavourable product or customer mix; risks of conducting business in foreign countries, including China, India, Brazil, Russia and other developing markets; our ability to quickly shift our manufacturing footprint to take advantage of lower cost manufacturing opportunities; disruptions in the capital and credit markets; fluctuations in relative currency values; our ability to successfully identify, complete and integrate acquisitions; pricing pressures, including our ability to offset price concessions demanded by our customers; warranty and recall costs; product liability claims in excess of our insurance coverage; changes in our mix of earnings between jurisdictions with lower tax rates and those with higher tax rates, as well as our ability to fully benefit tax losses; other potential tax exposures; legal claims against us; work stoppages and labour relations disputes; changes in laws and governmental regulations; costs associated with compliance with environmental laws and regulations; potential conflicts of interest involving our indirect controlling shareholder, the Stronach Trust; and other factors set out in our Annual Information Form filed with securities commissions in Canada and our annual report on Form 40-F filed with the United States Securities and Exchange Commission, and subsequent filings. In evaluating forward-looking statements, we caution readers not to place undue reliance on any forward-looking statements and readers should specifically consider the various factors which could cause actual events or results to differ materially from those indicated by such forward-looking statements. Unless otherwise required by applicable securities laws, we do not intend, nor do we undertake any obligation, to update or revise any forward-looking statements to reflect subsequent information, events, results or circumstances or otherwise.