Beleaguered St. Thomas, Ont. chosen for Magna deal

Magna International Inc. (its head office in Aurora, Ont., is shown above) will build frames for GM's next generation of full-size pickups and SUVs in St. Thomas, Ont.

THE CANADIAN PRESS

Magna International Inc. (TSX: MG.A) had some welcome news for recession-battered St. Thomas, Ont., on Monday, announcing that it has been chosen to supply frame assemblies for General Motors' next generation of full-size pickups and SUVs.

Few details on the contract were immediately available.

However, Cosma International, an operating unit of Magna, said it will build the frame assemblies at its plants in St. Thomas and Saltillo, Mexico.

"Receiving this third-generation frame business from GM is a real testament to our ability to deliver on key areas, including cost and quality," said Cosma president Horst Prelog.

"GM is a long-term valued customer of ours and we look forward to continuing our partnership with them."

Cosma manufactures a comprehensive range of metal body systems, components, assemblies and modules including complete vehicle frames, chassis systems and body-in-white or complete body assemblies for the automotive and other industries. It has 37 manufacturing facilities and 12 product development and engineering centres worldwide.

Aurora-based Magna, a leading global autoparts manufacturer, boasts 72,000 employees in 242 manufacturing operations and 85 product development and engineering centres in 25 countries.

Magna shares were up 56 cents at $53.49 in afternoon trading Monday on the Toronto Stock Exchange.

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