MGA - Earnings call transcript Q3 2020 | Magna International Inc.

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Operator

Greetings and welcome to the Third Quarter 2020 Results Conference Call.

During the presentation all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded Friday, November 6, 2020. I would now like to turn the conference over to Louis Tonelli, VP, Investor Relations. ahead. go Please

Louis Tonelli

everyone conference Hello, to third our Thanks, and XXXX call. quarter Jason. welcome

today Swamy Joining Galifi. Don are me Walker, Kotagiri Vince and

We a met today our comments quarter quarter. ended results will and XXXX. third this have Yesterday, We morning XX, Vince. the issued for from the Board release approved and Don Directors September our press financial of formal for

updated press slide the at find the of release, financial our presentation call go will call section the today’s in You webcast, magna.com. all with to along and Relations the quarterly review conference Investor website our

Before results assumptions or complete disclaimer. actual Please we just these forward-looking and cause uncertainties, reminder, in and to statements or applicable a information be the today those within press Such the of of which statements. meaning a Harbor may description discussion company’s our get started, from or release statements performance materially securities expressed forward-looking different risks, may the certain contain for implied legislation. today’s refer as to future Safe involve

note we in all information financial today, that review dollars please unless figures U.S. discussed otherwise As noted. are

appendix included statement for between key XXXX certain We in lines items. 'XX results reconciliations reported and financial QX excluding and have QX results unusual the of

divestitures. Our mean the we 'XX sales exchange, excluding of we quarterly recorded when the in unusual and earnings in we on and that of discussion noncash organic of QX today use charge impairment the excludes Please the foreign 'XX. in movement, comment items the impact acquisitions the Don will term quarter. impact context note

our February quarter time our now, call XXXX will XXXX. as pass to and be year-end Lastly, please we at outlook providing in note the Don. that And over the I results will same fourth report we

Donald Walker

safe is you Thanks, today. healthy everybody wherever Good morning, everybody. are Hope and Louis.

third months. the the top employees as reiterate I their Magna. Before of including the our impairment to Magna's all quarter financial in results; our I related all health vehicle appointment our agreement of review acquire of world joint our Hongli; will in with accounted venture X one in exceeding manufacturing our the at and priority I ventures; and remains highlights employees production charge to transmission startup past noncash to challenges investment that equity joint like our again, Fisker; Today the to will bit BJEV around results. up I in recent of camera I safety next and start CEO; would our once with I like monitoring. China; meeting announcement switch our strong award Magna our Swamy's of here acknowledge announced our will efforts and strong with little our would also program a for order cooperation in QX key start, a our tremendous the

in COVID-XX our as China. of by which quarter, the started the production second and operating We declines America markets Following the year, Europe North in recovery our with are experiencing performance a first the the at quarter. particularly pleased driven key end the of half well the significant we in pandemic were in as production of

to production. and and to the our reflect While strong of year-over-year, focus sales in in we in discretionary increased lower world quarter. operational X% reduce EPS costs were on down structural These results cash the free taken XX% adjusted class our flow. levels And actions $X.X billion generated manufacturing we’ve to response $X.XX the

operating GJT are shown wouldn’t now production. manufacturing. taken sales structure safely, to philosophy of it adjust we’ve reduce in done have government's our discretionary and to believe our the have fairly months, is we spending auto our agility shut been been changes risk to industry for realize would took volume We on few robust the COVID-XX the impaired we its I changes has of in business further past charge our recovering years, going. future projections and to I the minority Similar quarter resurgent including Based sales in quarter. past and impairment of production some in noncash remains so our interest. importance Jiangling the environment. million cost of operating concluded Transmission believe taxes and we and our a in charge again keeping few joint the action down I like years. While in value hope the to year, asset the of adapting cash evident once We’ve noncash to carrying results year, highlighted past during $XXX this that we’ve future In we’ve and a Getrag or this, this we joint our the of the develop last Getrag third plans address ventures. faced flows impairment after began investment venture

quarter We included GJT. size and are venture, further growth right business. joint disappointed to projections joint in in last particularly announced charges in The we the our venture Getrag the structuring actions future in Chinese

ways businesses. optimize review joint venture to continue to transmission We our

the be dual On continues side, transmission business, strong. or to our which positive primarily DCTs, transmissions, is wholly-owned clutch

DCT an our a strategy. electrification powertrain is element the embedded important hybrid motor into on of neutral package Our directly which transmission is

for that recall we hybrid transmission XXX drive our covering different scalable This wheel for You'll transmission applications. platforms. an for award have technologies BMW variants DCT, from award front vehicle is including

forward. we be to with have since noted Overall, other products, business been in some the value continues allocated our proportion electrification higher our OEMs of to DCT this that strong Investor and at DCT outset will resulted has from XX-volt confident hybrid has our customer. for a year JVs. that in additional in we acquisition. our been next earlier to launch product at remain the investments year an a the we're JVs our DCT hybrid vehicle We awarded Unfortunately, also and that interest We key product this Getrag Day good begin impairments those a going supporting customer's strategy

continued launch highlight JIT full XXXX. in signed The September, This optimum discuss entire enable position focus capabilities transaction testing, seating me are integration. an on The sites, trim sourcing currently vertically structures, agreement increased the engineering an launch solution and have this hold integrated seating outside that expanding a We in plants the let Arcfox a we non-controlling and we for began joint manufacturing venture and industry. joint developments the couple in BJEV, to Magna vehicle Magna, the we unique a our market a automakers. our and produced couple vertical Hongli, Next in interest -- strengthens we our quarter first XX% of complete in through in including supplier past that in with some important the China Arcfox early that demonstrate manufacturing recent for to China, Europe. and is to Hongli's the acquire at majority in first an foam our seat close leading China α-T, be business. assembled transaction assembly, of seating Hongli's of competitiveness venture automakers. additional Back to Chinese for expected ownership in to is vehicle with vehicle and brand facility began with a

years, ramp are and While significant next volume be couple introduced. is of production Arcfox we to over not expected going vehicles through up grow they're to the as additional XXXX,

electrified automakers the for Fisker the This Ocean traditional for is XXXX. signed Fisker As to and agreements of for quarter planned particularly a strong Initial competitive full mobility great support provide scale new is the manufacturing a strategy needs part SUV. production a to for capability. example with seeking portfolio framework for strategic the new and with to well position fourth our sharing entrants, as our and engineering players that of unique direction OEM leverage our manufacturing our of as us, platform we cooperation offerings. utilize and their mobility future expand is vehicle to This

representing X% cooperation, purchase of its shares Fisker warrants currently of part approximately equity. Magna As the to issued

In business for system addition, new awarded across for multiple we global have models camera recently a monitoring a automaker. vehicle been

in combine market technology more ability safety surroundings. driver mirror, to our new and system will combination about for capabilities. creates driver's capabilities and vision optimized customers. This a enhances solutions complete side unique system of to Our giving system electronic camera, ClearView that rear information our ClearView Magna's our by demonstrates XXXX using the enter provide their The software a the

Board been to CEO, we the as that of at Leading following Lastly, retirement my over -- and end Kotagiri the year. Swamy appointed Magna XXXX, I'm happy January, importantly, that has effective announced tremendous recently dialogue ongoing honor, the has and I've regular with enjoyed contact. that proud truly I've years accomplished. I'm investment these a we've community extremely the of miss had the everything will and

few as through Fortunately, most, familiar presentations, calls, visits of all over his and through Swamy offices. are past years to the investor quarterly investor through our other well not, Troy as if days, interactions with you

management am into in decade at next I'm experienced that, in confident also very leadership very in advancing strengths, beyond. team ability technical to addition he has Vince. experienced and with And the to the over the played and mobility landscape. in of senior changing Magna Swamy's I Magna's we Magna. and strong the strong forward management, In And leadership across have the positions pass an developing Swamy's I'll operational position speaking move call in our strategy senior and to confident integral extremely role and

Vincent Galifi

Don, good Well, thank and morning, everyone. you,

relatively quarter in of quarter. decline we our cash the recall, bounced stronger generation key recovery during to low production. following third we significant even we worst second and free profitability, experienced markets a Don And vehicle the As XXXX, on production in vehicle flow that quickly the mentioned, back year-over-year in margins solid can

Our XX%; free Magna XXXX X% X.X% third up attributable of billion, $X.X adjusted third to is diluted billion. compared quarter EBIT results of million, XX%. of quarter adjusted net margin $X.X EPS which flow up Adjusted adjusted EBITDA up last year, over of of million, $X.XX, $XXX sales include and cash $XXX XX% of the of income to

dividends. $XXX shareholders returned We million also through to

I'm increased we these financial my Lastly, for outlook our to in XXXX. review. cover going

quarter quarter of billion, third were a XXXX. total or $X.X decline the third $XXX of Our X% sales from million

programs roughly particularly assembly reflected programs, Year-to-date, impacted impact Magna Steyr, was on production negatively have vehicle quarter tailwind. coming certain and production, the in of and the These strike $XXX by were the results negative largely an in were global in offset as new GM the quarter. that a of sales Europe, concessions. sales organic On with Our our end lower anticipated translation, production were customer of launch about on third by at basis partially weighted which of currency outgrown production, volumes line in price lower labor X%. in by net the at this million the quarter, sales our Magna XXXX into third our was basis

to We outlook. also the quarter, in in see $XXX EBITDA expect Despite market our sales will million. million of or XX% solid lower as the increased you outperformance $XXX the adjusted sales, fourth

result benefiting and substantially at and of and a both structural an reflects across X.X% Also offset segment. which as EBIT year the end Each earned year, reported mix EBIT increase of were in foreign last year. improvements generated segments and percent in government cost XXXX, certain realized of exiting the and compared productivity of third quarter strike savings partially have favorable our of vehicle at the for also exchange third quarter. as higher third our discretionary efficiency These year. a Lyft spending in losses programs, results higher at related better costs. X% Our net the result of on costs, to lower percent GM, about from of support a points We in which end quarter warranty efficiencies quarter underperforming margin in lower with adjusted a the last our launch sales the XX to margin basis adjusted sales COVID-XX margin and impacted to last come labor partnership of XXXX. company, increased third the facilities, the dollars quarter last autonomy by compared our in employee third negatively up complete by The

quarter going outstanding. fewer compared discuss take last XX.X% change tax XX.X% accounting Our for to legal this the primarily QX increase partially the ownership carrying The rate. Diluted XXXX. value uncertain in year. EBIT X% I'm was of interest in tax tax to for Magna changes our second due $X.XX partially EPS to of GJT higher $XXX to The increase was million increased to summary income of net offset and for was Getrag effective effective income non-cash joint to the complex. our We’ve higher rate favorable compared to by the by a to appendix. reserves The joint to investment lower shares positions, mix of the in income moment reflects included impairment expense $X.XX the against the a compared XXXX, our $XXX earnings. reflecting QX the attributable in offset million impact is quite venture. higher higher charge the and in our Net of ventures year,

quarter Our is net this impairment million. $XXX

a of pre-tax of $XX number million. recovery statement $XX recovery minority a However, of are The impacted. million, income charge and tax $XXX of lines interest million

U.S Lastly, of cash our the charge review EPS now GAAP investment impact the Magna activities. will impairment is on flows I $X.XX. and

third the million equity and activities have working assets, private quarter $XXX third $XX of including billion $X.X as as to in third base. included a $XX second Free supply quarter well This normal million among we the assets in flow from cash intangible capital, $X.X quarter increase in payment reflecting other operations XXXX. million in generated assets to million $XXX in amounted to the Investment receivables collection things million investments, investments. the During $XXX cash in patterns was generated from return customer with from fixed in billion XXXX, compared the cash other quarter. our that of been a million, delayed $XXX and of

we shareholders addition, returned In through the quarter dividends. $XXX payment million in the of to

Our stood cash. at billion billion, liquidity sheet $X.X third X.X remains the quarter, strong. end very At of our balance the in including

X.XXx end adjusted the lower X.Xx Our quarter the third at stands of at EBITDA QX. adjusted the than debt, in

of As in decline target is above EBITDA severe given first range the in anticipated, half the this the year. our

Toronto our This quarter target Normal new We will approved liquidity of in the a in XXXX. our the of XXXX. short-term, in that New new the subject stay will York ratio and to announced November Stock common collective our range our Bid and our into bid Yesterday, normalize Board approval by reflecting confidence purchase up to Issuer to Exchanges back of $X.XX, We the likely but future. XX.X today our expire Course shares. million to above expect our Board third in approved range the dividend

turn to updated outlook. our let Next, me

remains outlook of supply to If factors. production other degree significantly Compared As production results COVID-XX infection is may challenges years, actual other increasing a a of our set rates, always, our consumer future our with uncertainty surrounding significantly. other from production associated on and or risks there predicated assumptions, also assumptions. production vehicle higher given vary demand, chain very

to reflects and quarter and of operations expected expected which margin from spending sales has well XXXX. strong as flow improved our primarily The reflecting cash third than higher some we XXXX The experienced free assembly improved performance light previously production cash in increased slight expectations in Our tailwinds, sales. XXXX as for and in anticipated operating expectations. the relate our decline improvement outlook, outlook from and August better mainly cash sales flow markets outlook a in currency expected mainly capital higher vehicle key

implied included conference down of few X% quarter income in quarter to fourth reinstated also markets income also anticipate also sales volumes approximately segment QX, expected the our our our XXXX. equity Europe, elements expected and of we've down solid A X% production net for Magna. compared regarding is to be attributable We production being we other North including of to XX%. by and margins vehicle global down fourth In XXXX. despite outlook our respectively. appendix observations segment, in another slide to and full-year approximately quarter Vehicle Overall, deck, America call outlook We year-over-year. expect production key the

with a be market level up over QX worst with at best strong. organic growth XX% sales implies range to sales total Our XXXX and expected

of percent the of million $XXX million dollar in XXXX. an range compared fourth quarter to EBIT EBIT million to $XXX Our implies range about $XXX

in a for actions our been QX implying $XXX $XXX back would flow have between a $X.X billion flow to be for for income billion in This questions $X.X at line we This million to address outlook of range compared bring 'XX. range range Thanks current your $XXX to across and with Our $X.XX our comes industry We million $X And taking question. your the the in compared is XXXX of free the reflects to we combined between fourth all very second our compared morning. XXXX billion billion environment. now million XXXX. to [Operator to strong solid and million attributable $X.XX quarter to billion the business $XXX August. proceed half to quarter this million Instructions] billion pleased Please time. with of cash cash Murphy about $XXX from of the our attention would And question answer America. this the fourth your net to first free is of Bank expected to Magna million range John for of $XXX $X.X

John Murphy

EBIT on you thanks on which the a line wanted ask in the went I just for here. simply the the guys, a if fourth XX% of The [ph] just the quarter, very up that's you at It's level. is, even to waiting, all strong. market. as the to and that lot rolling I the at above mean, helpful. top question -- outflow detail very versus Vince, on this look you just Good is of first the through, confidence? around morning developments Are sales there Because, level market particularly outlook, fourth programs quarter without XX% you giving and

seems the quarter. the this And something like in seems be it you're like must So market rolling fourth outperforming in. really

Vincent Galifi

is think segments, mix -- better which some content is sales content thing seeing per what I you're vehicle. to per overall new expecting Well, product vehicle, program benefit defining certainly our grow We're quarter helps of the of within or continued old see the to seeing in average just fourth launches. also our way some

So sales helping the on certainly that's line.

in margins about programs from QX than it'll where those in QX at side, be a math, On were if kind work But support government points. there we you you XX and benefited basis lower QX. the remember implied the -- little of margin look

of So look of this continuing neutralize obviously I kind year, activities starting QX of some million, if at about at good bunch and We reflecting costs pretty that of I a think the our in on we're company we're QX net taken in and range that and and some strong structural expecting the benefit QX and at we're and see Again, you We'll of took get QX. see out. to QX, margin, we It's in seeing through the a continue the growing on in of of ballpark the of still costs XXXX margin. potential $XXX that looking where right-sizing continue that benefit the we big margin undertook QX actually look that for QX that's into the to impairment of side. whole in severance programs. we've and benefits as it's QX margins, savings support kind the government

Donald Walker

other difficult made part, we've going be to number is the the right -- those been we've of some a the with for some in launches. years losing most well, seems John, pretty in some areas. had improvements everything good what knocking now, really past in And thing divisions struggling we

So that's well. helping as

Vincent Galifi

for but they term SUV, stronger, say including launches, in sales just in generally let's quarter. quarter compared some relative third fourth strong -- the the GM the on year-over-year, programs Yes, in sure or very relative terms -- big programs where side the were to are more the GM

on the So on of launching content and got Escalade that. we've that's helping got the definitely there. us course, we've And some Bronco, we're and content

that few as programs well. launching are So there's a

John Murphy

means getting sort And whether between is, and look costs your you sort Hongli shared how the platform to I'm what what strategy of and is platform portfolio two-pronged the question, the second you of the there Arcfox might -- maybe it here. just and can development, China Okay. total position define call what for what any the of with Fisker? at curious and Fisker, it does then just That's what for And remind in is crossover Arcfox and that doing curious just or platform strategic the how these platform us then seating in acquisition a partners. you I’m be And sort skateboard development a with -- you're to question China? when want EV paid very of if current second you helpful.

Donald Walker

we've Magna and back Yes, let if you relatively me start small has America XX grew with look seating. at the then in as been, in you North first years, going Europe. we been historically, know,

player We this new through We've strengthens gone some there. relatively acquisitions. we small operations, done believe in we in of So big and with some made organically are China. China continue still to our some and over but some some greenfield winning we've position China, very times. penetrate just we in competitors And can have this difficult got business have

a growth just was turn for this us us [indiscernible] continue with really in Maybe I'll over move just Fisker. what to can what pretty up over we're Arcfox, So we Fisker, for greenfield to customers. doing China. our tied we're and give to capability, for because We're in we Fisker full it Swamy limited say.

We then are leaving do to say, they them, Fisker to it want you Swamy, want and what to but add up Arcfox? on anything,

Seetarama Kotagiri

at said, we bring or Don, But John. lot talked importantly, together there in perspective. platforms a most that able specifics, and Magna. is like you always advantage I a from of platform I of core all we've generally level a how being system is And across these technologies about think won't an be to think Yes, talking vehicle

different done at that have levels. We

customers provide from example are able and discuss customization So and is and some details. is the Fisker to that being obviously, that we different of base other OEMs details platform, not of and one able different the to those stuff

John Murphy

-- that's you're that. designing, Okay. mark. obviously is, think stuff. follow-up right, sense to don't a business guys I question of good you secret in Maybe is always of that question are that big The engineering just EV, manufacturing at business the very and capable a one this I mean,

might think lot you're but what interest costs for how ever of in But being obviously are Somebody with a what I going we then and you. but here, doing here there time? you able just future a what will the shared more Because here. on understand right where partners. based there's in I curiosity now, on Arcfox doing what time I think is it's you over or of disclosure? there's what riskier I we what's in hear lot might can to else have mean, other mean, is point taking develop a you Fisker you're these can development do and platforms do about to I be these the going costs be

Donald Walker

Yes, said, and that one say platforms looking power key always scalable being levels, talked the of like ADAS, it's I John, things plus. the each we've of at certain at modular that within I about LX, whether product LX powertrain line. When

As even in vehicle what's each we what structure. is Cosma go through this, of [ph], the exteriors, like underbody the

it different be always what they could with a oversight on the of outlook and have We And kind what engineering tire sweet manufacturing the what capability with is vehicles on Magna’s go spot segments. through our from done in perspective.

We together. are bringing these things

and the what So consider technology across happens to it's be overall. core platform portfolio. is is development, very a platform say, This difficult to we it the here

synergies there to use hope to forward, will that that, have forward other like off-the-shelf just specific platforms. difficult but we on And So exactly for products. things going see definitely any quantify the and be going developed been

John Murphy

there's side good sounds may GJT point at it. bit And were way the when parts doing on there's then what that on are curious, that's a a than quick sounded be in real other sort package Maybe HDT you little on developing Okay. the like it's go to been but perfect you lot side. some write-down. just really of parts been acquisition acquisition, then like of you positive hybrids. Don, had commented is HDT of some neutral less may allocated you if it kind some based know that the now, But it really lastly, just the the And that there's total, right. have of that negative, about think on value for -- value

acquisition, it's in really write-down a actually accounting an this GJT value and a of follow. kind And to still in rule not significant of lot of something really way. the Getrag total it's impaired is is sudden that So you're in forced there being a all

Donald Walker

John, and I continue beyond is product what it win talked you portfolio. timeframe decision And systems, about, and even. a continues definitely driveline way in from the show in business our inquiries we compared DCT lot to a transmissions, various the we adjacency the it to customers, our think as hybrid in XXXX duplex great had more going to definitely

strong the a roadmap DCT see there we a is is on the are EV’s as the next as as there. also DHT the based -- platforms. And to we So hybrid that step, platform, well at and looking applicable

step and a So electrification that see as it right decision continues the be we to the foundational for process.

we the the So the still right is and decision portfolio only thing. seeing Vince it's think why is some was talked a in believe a add I reason But and it China, maybe regional can on Getrag, the it where we product matter color application product right it, of about impairments. you thing are as the overall

Vincent Galifi

it's John, Vince.

unfortunately, at investments -- me as equity accounted separate in Just look the forced our our to rules wholly-owned accounting operations pieces.

this required significant purchase acquisition. compare some pretty originally And a that impairment forcing on testing, So as we're got doing to price allocated year. how that's we this I to

took were also consolidated entities impairment business. I on and difficulty] this [technical substantially to required. opposed it I If all say this these We through wouldn't can looked on two, as one be at that lens

there's we've some underperformed -- end just impairment you are just fixed do, talked test or but that are that the following all you Swamy and still impairments it's equity think consolidated, applies in and required. in we China, about, had this we've be when our because acquisition there'd even as extremely be in at the anything It's that's account a substantially about rules. a asset result and Don uncertainty talked unfortunate look wouldn't some about you about different the and Swamy think because its But as I you expectations. when whether talked at strategy. always outperformed in well you And entities, electrification positioned program and you Europe,

John Murphy

helpful. much. Yes. Thank you. Thank incredibly very you That's

Operator

Itay of with with line your And our Citigroup. from the next Michaeli question. question Please proceed comes

Itay Michaeli

And both. Great. Good Swamy, Thank morning. and you. you to congrats Don

going discussion, high the you you're in of still question like for Vince. additional back be opportunities It the some there's I your there. margin First guidance. range kind mentioned think for may And X% looks to exiting earlier

puts we kind of how the be there's XXXX X.X% there, upside a the helpful. having as range about that and at of I years? think should So to out couple potential Understand guided high think of lot Any over we will of a next but original should X%. level, takes about uncertainty think there

Vincent Galifi

in right But the -- now we're plans. middle of in Yes. business

So information rely handy and I have that at I on. right that look don't now can

in And So color full think back our a We I as right, volume and way think follows. it assumptions Itay, -- we'll guidance, of pull sit I XXXX the would were did pull sort we mix February. If kind in But, given you been is exact. give would our of about the business improve I additive, things business where benchmark. cost back be XXXX. at in some in the our we of would to I happened gives and year that structure a believe, have this and look the what's to then uncertainty, we've the done that

to that, volumes plus, to be don't I a I where the think are. but are that's too you they So going remind got

to be going probably they're lower. little a bit think I

that's you kind adds more But say, awards, So where structure of point a have the the know all ‘XX. something going and don't business we negative. for not changes That's continue when into ‘XX, future add become, in one to cost plus and to. kind new that's QX of and I foreseeable QX item, efficient just that on sort I'd of two of at out this my visibility or that's time. ‘XX a the it's

Itay Michaeli

previously of by were for new then particularly the outlook terms secondly $X was and over maybe And that. you update level hopefully broadly And take in revenue business. of I the business of new billion then just on thinking ADAS win the XXXX. Any coding to a very know give business update the there to Thank activity. that hopefully helpful, us you updates of then just an you us new And pipeline. an broadly bit that’s And give just coding on can of Vince. that. and secondly can on business No,

Seetarama Kotagiri

Go ahead.

Vincent Galifi

Go ahead, ahead. Go Swamy.

Seetarama Kotagiri

talking great position the going of process Vince, comment additional I and a a in think some win I in we've to helped advanced us which actually have programs development us some technologies that were undergone get that and on just business. to put that make about the we was

at So from to platform ranges in will significantly. core I be ’XX. look X%. talked to CAGR we think we technology as X% ’XX to about to out And help that ’XX and earlier the ’XX, the growth

we're talking on in ’XX Looking the are programs that core in the good through. to but there terms ’XX, to is XX% gone some based that XX%, we've at development we traction of

Vincent Galifi

look or ADAS, where going on say I'd targeting of the exceed our pipeline, plan. the other Itay, delayed, in seen With not to into on over Then of get I are and pushed we areas business the today, been awarded. if as February some but Yes, as at I take and plan if results of program confident program meet next respect specifically the some we the some year a were just -- the have quarter in on most have and to businesses, programs guidance certainly of first that some they to -- quantify the ’XX, we'll awards look we've terms that we're in our going were make But slippage think that. awards year. what that they lost that and that we were the date at to a conclusion some that had we've it's what I'm be out months we been I in it's the thought harder just a of X

thought the of So, Itay, we going beginning be XXXX. track to were of at on we in where we're overall, terms

Seetarama Kotagiri

mentioned think And of camera for a couple that on maybe points the Don just Vince, I program award monitoring.

the think remote talking and existing the inside our technology and ECU good it's software, vision of is system monitoring, the systems we includes and are I complete the of camera how video outside a we bringing different with intelligent together. mirror course. are This example basing about, mirrors

this bring lot trend good And us we a other traction able discussions it's OEMs. systems with So win, that's where and as to we unique be see see to than a more together. to a

Itay Michaeli

CPV that? the on of for Swamy, I award, the Interesting. just That’s sense that sneak about should any camera on, it very think we on monitoring helpful. how could If

Seetarama Kotagiri

But It's would on integration and look I needed. you the if because at at an Itay, number versus overall the an type the versus individually say of difficult it's be us. what based, is of system, the mirrors features cameras could that average, content increased for

Itay Michaeli

for Terrific. Thank detail. Thanks you. it. Got all the

Operator

ISI. with question from Evercore your And question. comes Chris proceed the Please our of with McNally next line

Chris McNally

again and over congratulations and get career. Don Magna return Don able to in so was stock Hopefully, you Thanks that Swamy, Swamy. his the much to XXx can accomplish

question that strategic. keep we'll So and One one optimism. model

had execution business the XX% particularly margins and the On X of a vision where have margin that's issues you couple already were used plus and a discussed last to years. This of the that that turnaround over to goal. a you've model, t a lot one power in is you impressive,

that we to going if to trying a plan, half. mix but the can gave pickup of like looks on in such the the second what off something -- curious, just nice see Just work floor this forward? second in X% sort that extraordinary about you're think there's half working in you as know that anything I implied X-year

Vincent Galifi

look at to Chris, let at about for I year to power QX the margins the X.X% in came answer mean, that. compared X.X% before. vision, try me you they and in

been efficiencies about. QX Part probably besides vision. this in basis some Part some relatively support and couple talked But little year. point it's restructuring business. spending think XX One the But of on and think vision ramp money investing couple the platform a got years. of leverage programs. was on basis, it, up a that, came areas. the core we've margin put GM came a strike going it's of in, last sheet technology which we savings. heard X.X% spending and see be once launched also other I through that this it's technology. next And expansion Swamy XX still I to that we business. of power at for think That small asset like we've areas bit our future a programs about did Lyft, that spending of it's and is, you've it, have, reduced over growing all, lot a balance was it. know in I quite of an it, to we through on of going that segment. rapidly about and got XX there of that are able in I to we say, around employee for having points on points, first we're look not and basis expense the we're And programs, the talk core -- that would But about fixed because to And power call the benefit to asset. Chris and Unfortunately, don't business we've a

lead should to higher own. and that. is on Unlike hit money to we're assets fixed it continues we've and that assets So to time this leverage going margins you depreciate got where over margins, its spent, the

sort maintaining be expect continued we're how I'd which application is spending doing And is function the variable and ramps gaining to to how to And to is tie is our we've capabilities same. got level a on be So and of the going that on up, related much complete engineering, the over the new roughly technology. business be business going now to of business. what platform new the is of our spending quickly going margins and time grow how

Chris McNally

really little the a terms of my question Okay. launch second in That's on more is Then sequence. helpful strategic. maybe

players level, customer As Austria, I alluded a question have in, what about have Because sort a to to economics John, in America grow. we're his is any think essentially it the all Steyr ahead there you startup sort perspective you facility? seems of the kind clearly take in a EV Serbia, high from don't seeing an in have world. of guess, the similar from this and question. I have demand -- new Magna capital but sort I all think in free facility history U.S would spirit And can launch which and of huge to in who the of like think of cycle really manufacturing, be do that. you of opportunity think a with get I something the for and once North it out I What a new Steyr

the grow the significantly what you about if requirements, from could that just like is Steyr So can hurdle opportunity requirements, looks talk anything here. CapEx about maybe we

Seetarama Kotagiri

So I think, question. Chris, great

at your we North the longer a position open with perspective, looking it's otherwise case a required or terms incumbent in the the To volume criteria of if still in in I said entrants, sense and the terms OEMs remain processes, the for whether combination In of a the have EV in think point America, facility. the at looking always of to is different manufacturing possibility with a the you of variants, to flexibility footprint is still business whether sensibly new would have how we look much same. makes term

You and something can or have to always flexibility grow with add on. talk the

whether criteria its smaller outlook, has maybe depend just will one volume. a there’s same or not, the be volume that I upon the or number. still think then a or with whether the three a two certain OEMs remains -- descent it multiple has to If which mix,

produce obviously plus, smaller gives today Our of Graz terms the of have to inquiries. can to units Kind discussions in we we a like facility, a lot But ballpark you we up minus can, start [indiscernible] grow. said, the to Graz our of I scale flexibility size year. are facility seeing XXX,XXX that continue and and a and have

sense. the we makes said at it Fisker, looking again if we XXXX, Beyond with contemplating possibility would and be

a So variables I need few to there's that through. think we manage

Chris McNally

calls, programs I think I there's programs, above. XX,XXX typical on those said previous you And that typically mean, done great. but are XX,XXX, you've That's and

Okay. sense. Thanks makes so much That again. congrats and

Operator

Please Brinkman Morgan. And proceed J.P. our the with of with next from line question. question your Ryan comes

Ryan Brinkman

your which think that those of you eventually sales another this on you over characteristics so, you XX. competitive question, -- over or on share up Hi. how one product segment? become the market of the taking do a time? estimate its cetera, estimate are is ClearView offerings if of could material do this Thanks amount out have and timeframe? garner targeted it market, the vision there for you power cost, in Could what and And How given Slide relative my opportunity product was for et to what terms stacks weight, packaging, think I

Seetarama Kotagiri

Good morning.

the Magna. uniqueness point was about the systems we’ve always of I think together, one key -- is there talked bringing which

also So This passengers. as And this a talked is good provide about we you that. is and always the with to information look forward, being drivers other to augmented systems example. the mirrors

from than with component In value, both the consumer, one plus availability at plus we feature, you is greater looking the -- in one the the good component have just value two, to the example terms OEM is a here. discussions look cannot as of the of to terms these at the comparison

view. this three it's with case, And value larger the gives consumer. OEMs more So, overall, software, like us, a is user content ECUs base to to visibility look preference. field system and increased of are giving of and able level, cameras it creating would right? has sure. to an driver In of only the is a to for terms it improved and we sense bring view It reduce at cost packaging it them, customizable For the for it in things makes that together if emerged synergies

So a value the itself. consumer lot to there's of

a both mirrors, large it's especially think market there's combination we software. the the So have that a bring able on with of for cameras, expertise and to two we we are and this

Ryan Brinkman

should Okay, couple that just next or think inbound awards Fisker, their How know you curious these in online. capacity in finally announcement of trend new particularly don't sort the I'm with have potential could with then more you lines, several assembly along the transaction years? additional ramping great. I have of we own think capacity? vehicle automakers if the complete over do startup that manufacturing about or terms after the Thanks. business coming transactions How interest any China And received you've of

Seetarama Kotagiri

Magna’s to incumbent the have not as we actually. or OEMS, startup with and variants entrants, continued as platforms. related it's announcement various it's the well-known, well I regular specifically Even whether are new actually capabilities have before think the discussions and the tire to

talk in We to see the portfolio we we America experience just We as and OEMs of us as believe extension, a we're in and like starting lot bring that entrant about from well as So to North and China. Don unique see in discussions the capability at as could be perspective Europe. of to there reliability, manufacturing launch an a look and scale their new robustness, to widen a enabler them. definitely to

a see future good So there. we

Ryan Brinkman

you. Okay, great. Thank

Donald Walker

Just want add your one to thing to previous question.

a out the about to and And going on talk to was difficult get penetrate. the lower. took put there was barrier at it's then Once to to maker of to and we as contract it the one, our It's get always first proven out, develop first starts lot a You you from much something, the market look are electronic most [indiscernible] an for tested -- it land to get would -- interest that ClearView. for you a platform. contract. it size almost is example, it others concept car decade and Once say, entry latch. get get the you It us a

once but a can then first So dollar can’t range, get one, you give the expect you it, get others. you

Vincent Galifi

our additional first $XXX program, the customers into, the additional a at the in it's sales very pretty ClearView awards a program. we We're we're about a technology. it's with And sizable think of are step I first looking future. estimating as And speaking million so are number year, about

So of us. I an think this growth for is area

Ryan Brinkman

a Thanks color. for lot That's great. the

Operator

Mark with next our Scotiabank. of your the Neville question from proceed comes Please line question. with And

Mark Neville

Hi, good morning.

it's maybe cost of -- just Thanks. putting more how savings. terms or do there of Swamy, headcount First color a help those is And curious just anything like – if structurally to congrats sounds cost some number about margin, off, else. was challenge structural that It it, but both a quantify, again, think the I a incremental on Vince, if little in big a want savings. with it's we me congratulations. but part maybe of around higher Don,

Vincent Galifi

related. related, right? is it headcount of Marcus, Some not all process

an when not and can about And or out, doing up value actually we opportunity of expect just what down. of the don't added do about what our when structural you sort costs come Some at we've because to look think that at to what took is the we've can it's improvement, talked, up headcount, done and the down talked reduced I team -- headcount is of we say the were what's think eliminate? We've of just end I it we back. -- labor and differently. that. even been because because So or we QX, look where what at some is we've real this costs -- in And taken volumes

in it, At about tell will specifically what call QX. as unfortunately at We savings an and are analysis we them this scattered volume view as on lot here the I Mark. severance we restructuring All didn't continue $XXX million and did QX in in to and about and looked QX. terms trying $XXX our $XXX expect we is incurred of kind everywhere. number, have In quantify I be and that about a our savings be basis. QX spend time don't at of and that was of just point, annual in to There a when related. point you costs, provision there And spent permanent some just did can some even million or more versus

fall today. And a number year, positive full obviously, that the ’XX. going don't And be this impacting some into We're profitability see XXX of -- basis. we a part on to of full getting should get again, there'll then that that's to our of till bigger ’XX, we Now the XXXX. balance we're

Mark Neville

I much strong. said to Thanks. you don't want pick the on too And very it's and I guess, QX guide

sequentially, it Just sort haven't growth subsidies, like than margin is sales I think bit the looks with were math done thought. implied $XXX of might've about rate the again, of incremental quite million. but the I lower I up sort look the a at

to maybe of excuse it's savings or the come are taking cost in, those, me, mixed. some maybe So some time

Just to that. curious if you could speak

Vincent Galifi

were kind XX.X in So X.X were at quarter. where $X just we sales at range if you're looking QX billion sales of the and to of -- look our implied kind -- over for you

has mix something that. got with do think I to

our to have business. still in about think seasonality You

there shutdown that Christmas still to a QX, seasonal us think and I right? You've got the different it's little hurt impacting a generally on margins does that in it's QX probably our but over stronger I holidays, in typically a impact different. is hope production be going the little basis.

you Mark. into well, got that to factor account So as

Mark Neville

Okay.

just maybe one. one just So last

on the carrying the and for sort I’m impairments just of last book X of JV, the down? Just percentage the the sort what's JV? that for remaining curious, accounting value of was written years what

Vincent Galifi

of number look you got we've -- JVs at what in -- Yes, the a there.

think quarter all dividends. over the in end our to of it trying $XXX the look thought. form a kind out We when I'm income, find our because $XXX price. of remember of purchase of a here, generated there, range in Do an I in at on certainly we've we to value probably carrying you're of less be our so you right, some in We're not where price the just to kind million it, lot at -- acquisition money of lot you value. easy the than original back of original movements terms taken recurring tie it's million could

value through our on the run pieces You all got to various that impact our books. carrying

Mark Neville

right. All Got right, All thanks. it.

the So I'll line. pass

Vincent Galifi

Thanks, Mark.

Operator

your next Levy our of question with question. Dan proceed Credit comes Please line from And Suisse. the with

Dan Levy

you reported Don structures, Wanted basically well it's and something exterior least to you've good period other’s what XX% in and implied past, that the the margin the body and margin at echoing to had in or morning Swamy, and go that's above quarter, congratulations. for third quarter. back margin. to a specific comments, Hi, you've segment the done question Fourth X% like

or So I just in it's business? the you but on drivers? getting, cost I costs, XQ, things support forward, a sense that mix in shouldn't quarter are us improvements, We had a extrapolate or there, third I mentioned XQ strong Or in low to you mean, to the the underlying you unique? and obviously truck sustainability noticed margin those and going results there those because days just that? few government you're in is know any the really efficiency pretty give fourth this contribution launch GM dynamics quarter about is those still of can some release nice

Vincent Galifi

XX certainly couple when sort which -- mind. think there's -- really out year, I Dan, -- stick look which basis points BES, last One my last points. basis at of margins is year's called last in under that Hey, the a you for they things XX of GM about is year, strike, out was we

group in by to last a that we first the volumes at So in actions previous of the we've we're COVID-XX. of to operations look in of underperforming you and half operations quarter. expected improve couple year, kind that's the those blurred operations reversed talking BES adding of we've the some QX were is impacted and But if in And overall about margin. so been QX on, But performance taking of performance of those the operations in year. taken improve our the given actions to

carry actions that's What won't carry that on margins. government at support bit at on XX activity. we've took And XXXX. level expand a seeing continue done. and to throughout company, just of efficiencies the been the actually we BES the some that as restructurings continue whole points is and the about that's and some estimate throughout BES of QX, and think launch employee basis entire the going benefits it's the organization to the of really into move going items on. costs, again, and into we right But to benefiting that's just impact I sizing programs, again through of of So We've their lower we the we're

And they're with the of as throw So don't kind continue in as take it X, time. why see continued you running some over I continued really sort at to up call those can improvement underperformers. I cost of let's some any restructuring, time over savings should reason of that's from that, the realization inch well good of from without that, XX.X, a of benchmark. benefits think the a margins X.X-ish,

Dan Levy

Great.

clear, that got So some And that. by in driven that run a of sustainability is be running lot, GM and whole particularly fourth see you quarter. how know mix? and on they're Because is high we is much strong content that rate a there to just I the to

Vincent Galifi

number think BES overall or to not Dan, when programs, number overall do Yes. margins. a program one and really and of may it at a businesses, of of you highlight don't and what I look customers look may our at kind

Dan Levy

it. Got

question to on want really back just I on then and circle the more complete And broadly Okay. vehicle. fiscal

I the think you So about, think aware know mean, of unique this but all we're we it I or is to assembly of piece us seeing engineering what well all now what piece. services we're vehicle do well. may quite that, -- I more be

you the architecture So that how obviously, sense or to new you're is how this of first, a and the what's appeal in approaching take services on really approach. automaker assembly just we of obviously asset when it areas that on allocation? to these scale some the just house. you legacy don't side. or of a have resource come maybe But powertrain, know us join take like could give in, a see startup the battery, as electrical they platform appeal because this And, of much engineering think you light to I on we they Is

Seetarama Kotagiri

Yes.

full of -- the services think part I it new. that engineering vehicle not important engineering is the is

also at vehicle We many full and of in engineering America and have North a OEMs, at level done both Europe integration. subsystem level, our that with a

not it's to the unique only entrants. or new So specific

We have the and that past that is we experience through. done and that working leveraging in the are

rich a there. heritage there's So

product a knowledge I systems. and think bit different little depth in our to goes

to top that together. get the interface that is can how product the and And leverage the of it I systems is is the things bring we groups not bringing talked We past. it the in have So full of knowledge, each like the experience know together. vehicles we about just

to So it startups say is won’t only. specific I

know the As the OEMs they at are experience. it, have we the capability looking and

at meet platform So needs. -- something if looking platform an they're and existing are often -- taking or customizing looking different to at variant an their existing to a

in all able bring to are to to are that look we above here table, the actually new And and of entrants, specific entire the the platforms way of development process we're involved chain time if we market And right. with at about. come I think Vince we that value technology them to helpful could there the be ahead, core of have that the lot synergies to is I think can a and say, the terms faster.

of of combination all a those. it's So

Dan Levy

And bit which the just on areas, unique? of a how battery approached are comments to you've any clarify sort more

Seetarama Kotagiri

bring how battery, power wheels. like to the terms the In we batteries the the of about we talk in have if you how of terms remember, work of knowledge we also and integration do the

and on. of chemistry lot terms going there's battery in so So a the on, honestly,

So battery to have not expertise. the the of should that's for of knowledge that, in system, lot a the and in and of I terms we say. us rest the But understand, integration of the packs expertise but something

Dan Levy

Great. Thank you.

Operator

And our next question Markets. proceed CIBC World Please your comes from Kevin question. with with Chang

Kevin Chang

again, my Maybe margins. Vince, of just the clarification you on impact a question. questions. And Swamy. Don called government couple and support wage taking for Thanks out congrats Hi.

cost about it's $XX math greater I your million, the line. million of decline my labor right, than contribution, saw mid in you think if is that's $XX

-- show this P&L? savings wondering your else where Just up in these cost would

Vincent Galifi

be would … they Yes, the in

Donald Walker

Overhead.

Vincent Galifi

SG&A, biggest cost part cost sales, of and Kevin. sales … to it's be overhead. of in of the Yes, probably going

Kevin Chang

a If closer when was capabilities. correct, in you of or conversation were constantly complete me Okay. memory EBIT X%, a capital on the to other at return serves And lot divisions. your vehicle X% division would just -- with average within highlight invested to That's helpful. this the corporate margins on manufacturing that line

just than given X%? that in returns step to in that you're average wondering margins function you've seeing looks vehicle be like complete Would now, the closer corporate how ROIC seen better Just that with the improvement today. manufacturing, margins

Vincent Galifi

of result invested we've new expansion, been do to investment at is that that gains support Certainly, Yes. better it's on the With negative, the pretty the returns of say Steyr that just of and and seeing we've -- Graz Europe than average, our the operating a a capital. been have activities. facility average. to capital invested significant a all our But invested case, returns today, I'd Kevin. better you this on business that return that's of corporate are that on all corporate but in here, impacting some what’s return continues in on some the margin in offset doesn't historically math the would as when impacts -- business capital than the sort be

Kevin Chang

on Thank Okay. good you. a That's Congrats helpful. quarter.

Vincent Galifi

Thank you.

Operator

from the line with question proceed And our next comes your Please with KeyBanc. James of Picariello question.

James Picariello

year that $XXX the And -- achieve within this targeted? morning changed realized should be restructuring you're by relative million end good What all guys. guidance? the to savings to at your fully What achieve are expecting previous Hey, has to year?

Vincent Galifi

say to our at guidance, and the year have though type versus that my through Yes, would of have of make we how year be be any dive that this that. do and people's we've X been of and next months I'd in We'll advantage Given is bulk get previous in full much information business on year a a realized me $XXX we numbers, the this in operating bigger don't I’d ’XX it terms views that as point group’s of felt plus. in that's the deep I going say to for I ’XX, relatively when change plans. million environment going this ballpark. to

So equal the as -- in we taken being of incremental activities to and improvements taking else result should have continue continued see XXXX. everything a place margins place were will take that to place or

James Picariello

Okay. it. Got

to major So achieved no the year? what's this change

Vincent Galifi

No.

James Picariello

sounds the ledger, we of Okay. It program quarter. government the All then by on your just side just to we'll right. at structural past bridge as a from though cost we support this talked programs fully level, the the have try about. as were to savings payments XXXX, positive high And reimbursed top-up

really that on nothing out front. So call

will be that quantifiable think how year, next this year? should offset year could net we there next is permanent in mean, be Just cost about an equal savings helpful. to Thanks. be It'd bucket your about repeat I this temporary that? we of thinking as Just savings a XXXX?

Vincent Galifi

to start see, more that's can free. depend edge on example, I for is Yes, think to up restrictions. if I costs happens what now bit travel somewhat a travel little on going with

that's meetings I this edge across be think face-to-face think to to past, get certainly We our start little to level to the little don't some be move are but spend people going to outweigh bit same the But rightsizing It works in going if start bit somewhat. up, People But we in important to that possibly. think could don't move a up we expect going business. the are have a been fine. a the were benefits situations up. going still virtually anyway on we're I working items to profits little to I -- money -- volumes easier from organization. certain are discretionary and necessary.

James Picariello

program, then on The share fully timing last reauthorization? And share the record the -- it. you company's the million within just expect track Board’s Just been historical term? of -- complete Got X-year would authorization that executing what's one. almost buyback to XX the

Vincent Galifi

this Do business. think reason close were you we capital NCIB. where the and that I to to haven't comes do. in for the know, we James, announced we periods to that we've a what there's And were come allocating XXth mind what were row a we to it I And authorized doing think year of couple is is the the

we stopped we pay acquired cash bring back started the I think again. the the at the Getrag, period But that, when got some example, we buyback we more to through [indiscernible] for into buying for acquisition. once to

have this in going XXXX. to do be doing at I anything consider when and look to we We're our can with changed. And we're X you through of get the resuming I've and this We capital NCIB So strategy revised up strategy a into next NCIB. talked about for the going not year. updated hasn't end our come said, allocation the business We'll plan years.

of of organically the to that use going then invest we buybacks. much of the to used a our function be or it's So And the business how is inorganically. and cash either how balance in

that shares that situation the the where grow you to buy be business. cash number we could used get some back and So invest the of being of is to complete to

terms unknown strategy on But this of So our we'll cut changed the buyback. back James, just little -- in bit the -- point and how we it, here. look this announcement we'll a with hasn't in at at but time,

James Picariello

as well, Got you Swamy. it. Congrats to to you, Thanks. Don, and

Vincent Galifi

Thanks.

Donald Walker

you. Thank

Seetarama Kotagiri

Thank you.

Operator

question. Wolfe Rod proceed question And our line from the Lache with Please with Research. of next comes your

Rod Lache

Great. Good morning, everybody.

the lines. opportunity was you motors, You the on been the just getting about talked of line electric the some particular in secondly, and truck that manufacturing vehicle think Oshawa aspect is And about in that hybrid traction with battery in yesterday hoping touch bit interest the transform EVs? What's starting And might on a technologies. then talked power that gaining is there been drive the see little your in competitiveness you to that you've OEMs? for you've GM that specifically electronics I you gears decision of XXXX. pickup feedback to drive developing

content do I have on vehicle for have hours over some per are of X,XXX you next Do the content of levels that the content pickups few of similar electric potential over pickups coming similar levels of years? you the or them. have think from out on you

Seetarama Kotagiri

integration, shows is value through in the that about a and the have Good And of for going that looked we as been that overall that chain business e-Track process. is, the where look go yes. not systems, the as competitiveness we launch And the obviously us we've about, -- the we morning, I and -- just through we of is through into on The answer we that but getting all Rod. looking by And we how systems we blocks at. are the system. the mean winning at talked programs what actually two talked at the have, the in building the getting go launch

very the on on so and a have and power rangers addressing actually we So strategy forth. [indiscernible] and comprehensive so the

look all we software to and overall So have at in -- come electronics, we how they system, we that -- have means position the we a which gearbox, power believe good I inverters a have the strongly the together. believe the very and the

overall from and an also We it perspective. at system are a at perspective looking component

I there. very So a position think it's good

bringing I anything, have tool programs past in the that a powertrain, pickup continue experience and perspective, talked we have think the of power wheels. across are we we the could that launching electrification, content, to with gain we With our with with will like lot the a OEMs. From to discussions if be better, other

Our market drive, market. just to the not drive wheel the actually up front opens four drive even address all-wheel wheel

that forward. actually as going upside we So potential see a

Donald Walker

battery have could high we as well, content product. pretty which So a frames is

Rod Lache

Right.

is would all-wheel in you're your wheel So that saying you transfer trucks a -- of the in drive you contents -- that on because -- systems? drive front be because that have incremental that's most pickup cases

Seetarama Kotagiri

it's doing So wheel the looking provide way I'm are transfer say the are a with at you that when they feature today. drive, always but happen four to Rod, case, e-drives. feature, we right We

So needed. where to and the the e-drive wheels functionality can thought when also provide

we look drive to should e-drives to going we we to the look are feature. drive, at. are able the consumers just to be going going and wheel only not all-wheel going at, moved are right, functionality, provide be mix address four customers, into So that able What to making the are is the forward. today, the But that we OEMs and them as

wheel e-drive, two a feature You right. at also look can with drive the

if of the I mean. expansion could market So it anything, what be is an

Rod Lache

pickup a for us, you Is around And great. context you the frames just the of this that? on way sort truck frames content the to few put or put into any to battery is what opportunity kind of any it you've Okay, have content for rivaling context and mentioned would guys? times,

Seetarama Kotagiri

at So full scale the to look content more evolves, the actually a that, and frames you change frame, comes and if a I than but if bit, be frame. little could vehicle of you more a battery as I today it it's think Rod. easily think look a than it full definitely And at substantial sized it will compatible

Rod Lache

you. Great. Interesting. Okay. Thank

Operator

question the next proceed your comes from question. with our Please Capital Peter Markets. line And BMO of Sklar with

Peter Sklar

in the going guidance, on that for the and back provided we provided just Vince, that January that Thanks. Right. savings, The of in you that was should plan the $XXX you million guidance of getting or part beyond guidance back of where provided that? you January? million think is XXXX, above restructuring that the when $XXX to restructuring you

Vincent Galifi

into guidance. built ’XX Peter, XXXX. to there should be of Yes, that to be into is had of incremental going we our -- I the what think was bulk But it was some baked

Peter Sklar

Okay.

your the production. three thing I programs about don’t other the talking that three to about didn't discussion the been about from you have programs. ADAS And ask there's there’s any today where to wanted and parts of talk -- improved were you you engineering think moving when I those The moving some -- significant margins, you're about

So the and to those an programs can they engineering launch give are of you on from in are to and us terms if they where update contributing moving margin?

Vincent Galifi

Yes.

So …

Seetarama Kotagiri

Peter. Hi,

Vincent Galifi

Swamy, fill go you in ahead can want. I afterwards. if

Seetarama Kotagiri

Yes, Vince. no problem,

will and programs we're in undergone the and but are continuing that the put And But the they're become better additional still line, I we think plan. that to talking this in anticipate development help programs of consider during we a the business. progressing have hitting you're core position, a what milestones, moving Peter, that the like the to they good about, also much I get well. some finish from so win to be to really I three have position We said, process to according technology. us

Vincent Galifi

add just little Peter, there. to color bit more a

the those remember, about -- look second you social if think quarter. talked in additional I we costs

not year, really role year this I get a be those I costs out, talk discussion back QX the and year-over-year is into lower. because first little QX probably at we I’d basis, didn't You bit compared my about half on of the say, higher, a Again, that it last of those to as little expect half but we're first running in meaningful. to

these impact the going more to is and to think programs be meaningful near launch. I in and ’XX ’XX as start

Seetarama Kotagiri

Yes.

Peter Sklar

little years? When launch? Does next it just the into you these next year three over three can a then do be more unfold start and bit get And specific? programs

Seetarama Kotagiri

substantial X activity X customer to months, to the next the want customer timelines, get whether know months, a part And But Peter, or specific already. don't it's I to are I over be the let's will engineering the say give the because is towards hump, of be to we I say, -- in next able coming be will would year, continuing but but would specific the the X plants production. too didn't launch they XXXX. timelines. in are are X launches

Peter Sklar

Thanks. And you can some one back understand, now do with more the the be I Swamy. you Vince, just and things that how recovery that buyback to COVID noticed question. you're stock? in feel Okay. I antidilutive given quarter. buying the that Is industry you last shares comfortable did during or unfolded for buying have purposes,

Vincent Galifi

specifically to they're related Peter, No, employee commitments.

of buying the the we're NCIB, the under have not our sheet part we the shares distributed because -- we're to kind balance So NCIB, them be will and of realigning commitments structure. play deferred employees. It's

Peter Sklar

Right.

Thank Okay. That's all have. I you.

Donald Walker

as would going closing does maybe of add, we're say I'm and because or few almost just time, just think, just remarks -- I lose out well I everybody. Swamy to to a just want

over -- a the question calls, been it Just, question asked all quarterly after little because hadn't the have investor disappointing. Peter, I'm at must a the would hundred asked glad end, if be the you you

forward for to that to what and as And participating want going quarter a is thank bounce also just is think strong So was very I that and from QX encouraged Magna from today. adapting in earlier, really I'm And Magna. back everybody I the said then, I beyond. issues a really it fourth quarter the pretty testament fact to agile up. see come

to their general, support I all Magna in Just took operations like the for back like all personally, thank to the thank years. XXXX. in investors over would over -- I

past which So the asked organization, And I manufacturing, years. when heavily product company. in time was global things X the and transaction lot a into focused really about. of years us a XXXX the we're we Intier to it get for we strategy, specifically been focused have specifically, of capital share, class been long-term a look of priorities single and a people world-class on development. We’ve career go XX our my And for ingrained our number innovation to strategy think takes I've really If a did since been to years, consistent people include Spinco. CEO the really, here probably I three CEO I of I the at

efforts, we for really the team with got some for And price. I've program. diversity I -- we've which that our that like other good inclusion the plan thought focused were cash things their important important And flow our in investors recently then are and free share in our sustainability think been a on

when have and getting customers Head I and as I feedback great think the talking to Swamy. what a we're really I mobility reputation trends of take to the of And well-positioned advantage the been of changes the and a of future I've lot with our as CEOs explained supplier global the our them powerhouse. Purchasing customers, that's with

in I team years. We've think X in succession really the we've got the company the management across industry. working past the hard for planning strongest been

out strong I a think in the starting role Swamy team. a strong position is really in really and

price XXx, somebody I took Magna think when increase when the was price you if at -- share me Frank Swamy, can I I asked mentioned of operations, CAD$X.XX. earlier take think the over had stock over to

split. we’ve to about that So just including the two share $X we about the $XXX gone hadn't over share splits from had

which got needs. So, I've over significant close a I'm publicly Swamy, and as I forward, am with very still amount equity whatever I've -- and held to accumulated of Swamy going and said support time. have I together, going Swamy I worked

I've with down stepping happens And company So was strong what believe I not didn't in interest if real really a would hands. the think I got be me, in the company.

share turn just in -- the can XXXx increased but the next you Swamy, XXXX, over I'll I'm I'll not XXx happy. so price over XX So we've since call. years, but everybody you if by can the continue about sure if to else to increase be Swamy,

very has have work thanks So all to much, the turn of Swamy. off Do passion career. over a everybody you continue number been great close the of I'll just -- of over projects a maybe you And with to on really want for and number mine. support Swamy. years. It a I anything

Seetarama Kotagiri

transition set as been or the few together, phenomenal your a in day, -- to the the credit process. good as it has you kidding normal of for was next so appreciate I head back but with for and And all get announcement, even should comments, after Don. to get way, we've goes Don, down or a started of the like the rest felt peer that Don, seamless it a and have at who Thanks, always, and helping through since announcement that work working the in for target aside making all my this your work All Yes. bar have nice comments. I I and day us. group, been because

and -- on many emails So of and lot a since are announcement I’ve to so all the the messages calls, gotten call, text you on. of who and

the wishes So working target Don I very look and my I that set very even forward you appreciate meet forward. I all with much much. And try will the out best good you to going Thank closer to there. you've

Donald Walker

I and Swamy. way we for the Thanks, needs with job and questions wasn't an done would've investor guess as more the over the and the have -- must say get phenomenal to investment the that and that to And last -- we calls -- we the who no -- good give questions is to say I the complicated but And Okay. I'd increasingly I and like get, my really able a there's thing Vince, the years, the investment community. in a update of understanding opinion, been community, Louis difficult.

easier. hell it a So lot my because hats them made to both off go a job of

And thanks call dialing very everybody into I appreciate So much the today. everybody.

Operator

call you your please disconnect thank conference and the conclude line. today. your for We for you participation that does ask That

Magna International (MGA) 6 Nov 202020 Q3 Earnings call transcript