40-F

United States

Securities and Exchange Commission

Washington, D.C. 20549

FORM 40-F

¨ REGISTRATION STATEMENT PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

OR

x ANNUAL REPORT PURSUANT TO SECTION 13(a) or 15(d) of THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2012 Commission File Number 001-11444

Magna International Inc.

(Exact name of Registrant as specified in its charter)

Not Applicable

(Translation of Registrant’s name into English (if applicable)

Province of Ontario, Canada

(Province of other jurisdiction of incorporation or organization)

3714

(Primary Standard Industrial Classification Code number (if applicable)

Not Applicable

(I.R.S. Employer Identification Number (if applicable)

337 Magna Drive, Aurora, Ontario, Canada L4G 7K1 (905) 726-2462

(Address and telephone number of Registrant’s principal executive offices)

Corporation Service Company, 1180 Avenue of the Americas, Suite 210 New York, New York 10036-8401

Telephone 212-299-5600

(Name, address (including zip code) and telephone number (including area code)

of agent for service in the United States)

Securities registered or to be registered pursuant to Section 12(b) of the Act.

Title of each class	Name of each exchange on which registered
Common Shares	New York Stock Exchange

Securities registered or to be registered pursuant to Section 12(g) of the Act. None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act. None

For annual reports, indicate by check mark the information filed with this Form:

x Annual Information Form ¨ Audited Annual Financial Statements

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report 233,154,283 Common Shares

Indicate by check mark whether the Registrant by filing the information contained in this Form is also hereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934 (the “Exchange Act”). If “Yes” is marked, indicate the filing number assigned to the Registrant in connection with such Rule.    Yes  ¨    No  x

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).    Yes  x    No  ¨

1. ANNUAL INFORMATION FORM

The Registrant’s Annual Information Form for the year ended December 31, 2012 is attached hereto as Exhibit 1 (the “Annual Information Form”).

2. AUDITED ANNUAL FINANCIAL STATEMENTS AND MANAGEMENT’S DISCUSSION AND ANALYSIS

The Registrant’s Annual Report to Shareholders for the year ended December 31, 2012 (the “Annual Shareholders’ Report”) was previously filed with the U.S. Securities and Exchange Commission (the “Commission”) as Exhibit 99.1 to the Registrant’s Report on Form 6-K dated March 28, 2013. For the Registrant’s consolidated audited annual financial statements, including the independent auditors’ report relating to such financial statements, see pages 35 to 76 and page 36, respectively, of the Annual Shareholders’ Report. For the Registrant’s Management’s Discussion and Analysis of Results of Operations and Financial Position, see pages 1 to 34 of the Annual Shareholders’ Report.

3. WEBSITE INFORMATION

Notwithstanding any reference to the Registrant’s website on the World Wide Web in the Annual Information Form or in the documents attached or incorporated as exhibits hereto, the information contained in the Registrant’s website, or any other site on the World Wide Web referred to in the Registrant’s website, is not a part of this annual report on Form 40-F and, therefore, is not filed with the Commission.

4. FORWARD-LOOKING STATEMENTS

The Registrant has made in the documents filed as part of this annual report on Form 40-F, and from time to time may otherwise make “forward-looking statements”, within the meaning of Section 21E of the Exchange Act and Section 27A of the U.S. Securities Act of 1933, and related assumptions concerning its operations, economic performance and financial matters. Actual results or events could differ materially from those set forth in, or implied by, the forward-looking statements and the related assumptions due to a variety of factors. Reference is made to the section entitled “Forward-Looking Statements” on page i of the Annual Information Form for a discussion of such factors.

5. CONTROLS AND PROCEDURES

The Registrant’s Chief Executive Officer and its Executive Vice-President and Chief Financial Officer are responsible for establishing and maintaining the Registrant’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) and internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act).

Disclosure Controls and Procedures

The Registrant maintains disclosure controls and procedures designed to provide reasonable, but not absolute, assurance that material information required to be disclosed in reports under the Exchange Act is communicated in a timely manner to senior management to enable them to make timely decisions regarding public disclosure of such information. The Registrant has conducted an evaluation of the effectiveness of its disclosure controls and procedures as of December 31, 2012 under the supervision, and with the participation of, its Chief Executive Officer and its Executive Vice-President and Chief Financial Officer. Based on this evaluation, the Registrant’s Chief Executive Officer and its Executive Vice-President and Chief Financial Officer have concluded that the Registrant’s disclosure controls and procedures are effective in providing reasonable assurance that material information relating to it (including all consolidated subsidiaries) is made known to them and information required to be disclosed by the Registrant is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms.

Internal Controls Over Financial Reporting

Management of the Registrant is responsible for establishing and maintaining adequate internal control over financial reporting for the Registrant. Such management has used the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework to evaluate the effectiveness of the Registrant’s internal control over financial reporting. Internal control over financial reporting is a process designed to provide reasonable, but not absolute, assurance regarding the reliability of financial reporting and preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Due to its inherent limitations, internal control over financial reporting may not prevent or detect misstatements on a timely basis. Additionally, projections of any evaluation of the effectiveness of

internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. The Registrant’s Chief Executive Officer and its Executive Vice-President and Chief Financial Officer have assessed the effectiveness of the Registrant’s internal control over financial reporting and have concluded that, as at December 31, 2012, such internal control over financial reporting is effective and that there were no material weaknesses in the Registrant’s internal control over financial reporting. Our independent auditor, Ernst & Young LLP, which has audited the Registrant’s consolidated financial statements for the year ended December 31, 2012, has also issued a report on internal controls under the auditing standards of the Public Companies Accounting Oversight Board (United States). This report is located on page 37 of the Annual Shareholders’ Report.

Changes in Internal Controls Over Financial Reporting

There have been no changes in our internal controls over financial reporting that occurred during 2012 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

6. AUDIT COMMITTEE MEMBERS AND AUDIT COMMITTEE FINANCIAL EXPERT

The Registrant has a separately designated standing audit committee of its Board of Directors (the “Audit Committee”), which is currently comprised of the following members of the Registrant’s Board of Directors: Lawrence D. Worrall (Chairman), Scott B. Bonham, Peter G. Bowie and Dr. Kurt J. Lauk.

The Registrant’s Board of Directors has determined that each of Mr. Worrall, the Chairman of the Audit Committee, and Messrs. Bonham, Bowie and Lauk, is an “audit committee financial expert” and that each member of the Audit Committee is “independent” and “financially literate”, as such terms are defined in the listing standards of the New York Stock Exchange and Exchange Act Rule 10A-3.

7. CODE OF ETHICS

The Registrant has adopted a code of ethics that applies to all of its employees, including its Chief Executive Officer, its Executive Vice-President and Chief Financial Officer, its Vice-President, Finance and its Controller and other persons performing similar functions. The text of such code of ethics is contained in the Registrant’s Code of Conduct and Ethics, which is posted on the Corporate Governance section of the Registrant’s website at www.magna.com.

8. CORPORATE GOVERNANCE

As a “foreign private issuer” listed on the New York Stock Exchange (NYSE), the Registrant is required to disclose the significant ways in which its corporate governance practices differ from those to be followed by U.S. domestic issuers under the NYSE listing standards. The Registrant has disclosed on its website (www.magna.com) a Statement of Significant Corporate Governance Differences (NYSE), which discloses such differences.

9. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The aggregate fees for each of the last two fiscal years for professional services rendered by Ernst & Young LLP, the Registrant’s principal accountant (the “Auditor”), are as follows:

Type of Services	Fiscal 2012					Fiscal 2011
	Fees		% of Total			Fees		% of Total
Audit Services		13,879,000		91.5	%	$	11,594,000		88.1	%
Audit-Related Services		469,000		3.1	%		1,095,000		8.3	%
Tax Services		819,000		5.4	%		358,000		2.8	%
Other Services		—		—			108,000		0.8	%
Total		15,167,000		100	%	$	13,115,000		100	%

The services comprising the “Audit Services” category for these two fiscal years were performed by the Auditor to comply with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”). In some cases, fees in this category may include an appropriate allocation of fees for tax services or accounting consultations, to the extent such services were necessary to comply with the standards of the PCAOB. This category includes fees incurred in connection with the audit of our internal controls and the Auditor’s opinion on Management’s assessment of our internal control over financial reporting for purposes of Section 404 of the Sarbanes-Oxley Act of 2002.

The services comprising the “Audit-Related Services” category for these two fiscal years consisted of fees paid in respect of assurance and related services (e.g. due diligence), including such things as due diligence relating to mergers and

acquisitions, accounting consultations and audits in connection with acquisitions, attest services that are not required by statute or regulation and consultation concerning financial accounting and reporting standards. The most significant audit-related services actually provided by the Auditor in each of fiscal 2012 and fiscal 2011 related to (a) due diligence in connection with acquisitions; and (b) consultation concerning financial reporting standards.

The services comprising the “Tax Services” category for these two fiscal years consisted of all fees paid in respect of services performed by the Auditor’s tax professionals, except those services required in order to comply with the standards of the PCAOB which are included under “Audit services”. Tax services include tax compliance, tax planning and tax advice. The tax services actually provided by the Auditor in fiscal 2012 and fiscal 2011 consisted of Canadian, U.S., Mexican, European and Asian tax compliance, advisory and research services.

The category “Other Services” captures fees in respect of all services not falling under any of the previous categories.

The Audit Committee has a process for pre-approving all services provided by, and related fees to be paid to, the Auditor. This process includes reviewing, on a quarterly basis, the details and associated costs of the services expected to be provided. Audit Committee approval is required for any services that have not been previously approved by the Audit Committee. The Audit Committee considers whether such services are consistent with the Commission’s rules on auditor independence. The Audit Committee also considers whether the Auditor is best positioned to provide the most effective and efficient service, for reasons such as its familiarity with the Registrant’s business, people, culture, accounting systems, risk profile, and whether the services enhance the Registrant’s ability to manage or control risks and improve audit quality. None of the services provided by the Auditor in 2012 were treated as exempt from pre-approval pursuant to the de minimis provision of paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

10. OFF-BALANCE SHEET ARRANGEMENTS AND TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS

For disclosure of the Registrant’s off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Registrant’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors, see page 21 of the Annual Shareholders’ Report, under the section entitled “Contractual Obligations and Off Balance Sheet Financing”.

For the tabular disclosure regarding the Registrant’s known contractual obligations, with amounts aggregated by the type of contractual obligation, see page 21 of the Annual Shareholders’ Report, under the section entitled “Contractual Obligations and Off Balance Sheet Financing”.

11. INTERACTIVE DATA FILE

Concurrent with this filing, the Registrant has submitted to the Commission and posted on its corporate website, an Interactive Data File.

UNDERTAKING AND CONSENT TO SERVICE OF PROCESS

A. Undertaking

Registrant undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the Commission staff, and to furnish promptly, when requested to do so by the Commission staff, information relating to: the securities registered pursuant to Form 40-F; the securities in relation to which the obligation to file an annual report on Form 40-F arises; or transactions in said securities.

B. Consent to Service of Process

A Form F-X signed by the Registrant and its agent for service of process was previously filed with the Commission.

SIGNATURES

Pursuant to the requirements of the Exchange Act, the Registrant certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this annual report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant:	MAGNA INTERNATIONAL INC.
By (Signature and Title):	/s/ “Bassem Shakeel”
	Bassem A. Shakeel
	Vice-President and Secretary
Date:	March 28, 2013

EXHIBIT INDEX

Exhibit 1	Annual Information Form of the Registrant dated March 28, 2013.
Exhibit 2	Registrant’s Annual Report to Shareholders for the Year Ended December 31, 2012, which contains the Registrant’s audited financial statements as at and for the three-year period ended December 31, 2012 and Management’s Discussion and Analysis of Results of Operations and Financial Position (incorporated by reference to Exhibit 99.1 to Registrant’s Report on Form 6-K dated March 28, 2013).
Exhibit 3	Consent of Ernst & Young LLP.
Exhibit 99.1	Certificate of Principal Executive Officer Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (D. Walker)
Exhibit 99.2	Certificate of Principal Financial Officer Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (V. Galifi)
Exhibit 99.3	Certificate of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (D. Walker)
Exhibit 99.4	Certificate of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (V. Galifi)
Exhibit 101	Interactive Data File.

EX-1

Exhibit 1

ANNUAL INFORMATION FORM

TABLE OF CONTENTS

		Page
	FORWARD-LOOKING STATEMENTS		i
ITEM 1.	CORPORATE STRUCTURE		1
ITEM 2.	GENERAL DEVELOPMENT OF THE BUSINESS		2
	OVERVIEW		2
	RECENT TRENDS IN THE AUTOMOTIVE INDUSTRY		5
	OUR BUSINESS STRATEGY		7
	OPERATING STRUCTURE AND PRINCIPLES		9
	RECENT DEVELOPMENTS IN OUR BUSINESS		10
ITEM 3.	DESCRIPTION OF THE BUSINESS		13
	PRODUCTS AND SERVICES		13
	RESEARCH AND DEVELOPMENT		19
	MANUFACTURING AND ENGINEERING		20
	HUMAN RESOURCES		21
	COMPETITION		23
	SALES AND MARKETING		24
	ENVIRONMENTAL MATTERS		25
	LEGAL COMPLIANCE		26
	INTELLECTUAL PROPERTY		27
	RISK FACTORS		28
ITEM 4.	DIVIDENDS		35
ITEM 5.	DESCRIPTION OF CAPITAL STRUCTURE		36
ITEM 6.	MARKET FOR SECURITIES		38
ITEM 7.	DIRECTORS AND EXECUTIVE OFFICERS		39
ITEM 8.	CORPORATE CONSTITUTION		42
ITEM 9.	LEGAL PROCEEDINGS		43
ITEM 10.	INTERESTS OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS		45
ITEM 11.	TRANSFER AGENT AND REGISTRAR		45
ITEM 12.	EXPERTS		45
ITEM 13.	AUDIT COMMITTEE		45
ITEM 14.	ADDITIONAL INFORMATION		45

In this document, referred to as the “Annual Information Form”, the terms “you” and “your” refer to the shareholder, while “we”, “us”, “our”, “Company” and “Magna” refer to Magna International Inc. and, where applicable, its subsidiaries. We also use the term “Executive Management” to refer, collectively, to our Chief Executive Officer, Chief Financial Officer, Chief Legal Officer, Chief Marketing Officer and Chief Operating Officer - Exteriors, Interiors, Seating, Mirrors, Closures and Cosma. All amounts referred to in this Annual Information Form are presented in U.S. dollars, in each case, unless otherwise stated. In this Annual Information Form, a reference to “fiscal year” is a reference to the fiscal or financial year from January 1 to December 31 of the year stated. In this document, references to specific customers include the customers’ operating divisions and subsidiaries, unless otherwise stated. 2012 sales figures disclosed in this Annual Information Form have been prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”).

The information in this Annual Information Form is current as of March 26, 2013, unless otherwise stated.

FORWARD-LOOKING STATEMENTS

This Annual Information Form contains statements that constitute “forward-looking information” or “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable securities legislation, including, but not limited to, statements relating to: implementation of our business strategy; future growth prospects of our business, including through organic growth, acquisitions, joint ventures or as a result of supplier consolidation; operational improvement in Europe and South America; and estimates of future environmental clean-up and remediation costs. The forward-looking information in this Annual Information Form 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 to 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 deterioration of economic conditions or an extended period of economic uncertainty;

• declines in consumer confidence and the impact on production volume levels;

• risks arising from the recession in Europe, including the potential for a deterioration of sales of our three largest German-based customers;

• our ability to sustain or grow our sales, including increasing sales to Asian-based customers;

• restructuring actions by our customers, including plant closures;

• continued underperformance of one or more of our operating Divisions;

• restructuring, downsizing and/or other significant non-recurring costs;

• our ability to successfully launch material new or takeover business;

• liquidity risks;

• bankruptcy or insolvency of a major customer or supplier;

• a prolonged disruption in the supply of components to us from our suppliers;

• scheduled shutdowns of our customers’ production facilities (typically in the third and fourth quarters of each calendar year);

• shutdown of our or our customers’ or sub-suppliers’ production facilities due to a labour disruption;

• work stoppages and other labour disputes;

• our ability to successfully compete with other automotive suppliers;

• a reduction in outsourcing by our customers or the loss of a material production or assembly program;

• the termination or non-renewal by our customers of any material production purchase order;

• a shift away from technologies in which we are investing;

• risks arising due to the failure of a major financial institution;

• impairment charges related to goodwill, long-lived assets and deferred tax assets;

• shifts in market share away from our top customers;

• shifts in market shares among vehicles or vehicle segments, or shifts away from vehicles on which we have significant content;

• risks of conducting business in foreign markets, including China, India, Russia, South America and other non-traditional markets for us;

• fluctuations in relative currency values;

• our ability to successfully identify, complete and integrate acquisitions or achieve anticipated synergies;

• our ability to conduct sufficient due diligence on acquisition targets;

• exposure to, and ability to offset, volatile commodities prices;

• ongoing pricing pressures, including our ability to offset price concessions demanded by our customers;

• warranty and recall costs;

• risks related to natural disasters and potential production disruptions;

• factors that could cause an increase in our pension funding obligations;

• legal claims and/or regulatory actions against us;

• our ability to understand and compete successfully in non-automotive businesses in which we pursue opportunities;

• 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;

• changes in credit ratings assigned to us;

• changes in laws and governmental regulations;

• costs associated with compliance with environmental laws and regulations;

• our ability to achieve future investment returns that equal or exceed past returns; and

• the unpredictability of, and fluctuation in, the trading price of our Common Shares.

In evaluating any forward-looking statements in this Annual Information Form, we caution readers not to place undue reliance on any particular statement. Readers should specifically consider the various factors, including those contained under “ITEM 3. DESCRIPTION OF THE BUSINESS – RISK FACTORS”, which could cause actual events or results to differ materially from those indicated by our 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 contained in this Annual Information Form to reflect subsequent information, events, results or circumstances or otherwise.

Magna International Inc. - AIF i

ITEM 1. CORPORATE STRUCTURE

Issuer

We were incorporated under the laws of the Province of Ontario, Canada on November 16, 1961. Our charter documents currently consist of articles of amalgamation dated December 31, 2010, which were issued pursuant to the Business Corporations Act (Ontario).

Our registered and head office is located at 337 Magna Drive, Aurora, Ontario, Canada L4G 7K1.

Subsidiaries

A list of our principal subsidiaries and their respective jurisdictions of incorporation as of December 31, 2012 is set out below. Our legal structure (including that of our subsidiaries) is not necessarily indicative of our operational structure.

Parent/subsidiary relationships are identified by indentations. The list shows the percentages of the votes attached to all voting securities, and of each class of non-voting securities, owned by us or over which control or direction is exercised by us. Percentages represent the total equity interest in a subsidiary, which is not necessarily indicative of percentage voting control. Subsidiaries not shown each represent less than 10% of our total consolidated revenues and total consolidated assets (although not all subsidiaries shown necessarily each represent more than 10% of our total consolidated assets and total consolidated sales) and, if considered in the aggregate as a single subsidiary, represent less than 20% of our total consolidated revenues and total consolidated assets.

SUBSIDIARY	VOTING SECURITIES			JURISDICTION OF INCORPORATION
Magna US Holding, Inc.		100	%	Delaware
Cosma International of America, Inc.		100	%	Michigan
Magna Exteriors and Interiors Holdings, Inc.		100	%	Delaware
Intier Automotive of America, Inc.		100	%	Delaware
Magna Mirrors of America, Inc.		100	%	Michigan
Magna Powertrain USA, Inc		100	%	Delaware
Magna Exteriors and Interiors Corp.		100	%	Ontario
Magna Seating Inc.		100	%	Ontario
Magna International Investments S.A.		100	%	Luxembourg
Magna International Automotive Holding AG		100	%	Austria
Magna Automotive Holding AG		100	%	Austria
Magna Metalforming AG		100	%	Austria
Magna Steyr AG & Co. KG		100	%	Austria
Magna Steyr Fahrzeugtechnik AG & Co. KG		100	%	Austria
Magna Powertrain AG & Co. KG		100	%	Austria
New Magna Investments N.V.		100	%	Belgium
Magna Automotive Holding (Germany) GmbH		100	%	Germany
Magna Powertrain Inc.		100	%	Ontario
Magna Structural Systems Inc.		100	%	Ontario

Magna International Inc. - AIF 1

ITEM 2. GENERAL DEVELOPMENT OF THE BUSINESS

OVERVIEW

We are a leading global automotive supplier with 313 manufacturing operations and 88 product development, engineering and sales centres in 29 countries. Our approximately 119,000 employees are focused on delivering superior value to our customers through innovative processes built on World Class Manufacturing. Our product capabilities include:

• Interior Systems

• Seating Systems

• Closure Systems

• Body and Chassis Systems

• Vision Systems

• Exterior Systems

• Powertrain Systems

• Roof Systems

• Electronic Systems

• Vehicle Engineering & Contract Assembly

Reporting Segments

We operate internationally through Divisions, each of which functions as an autonomous business unit operating within pre-determined guidelines. Our Divisions have been aligned by geographic region in each of our product areas in order to meet the needs of our customers and respond to regional economic and industry factors. Accordingly, we operate in three separate geographic reporting segments – North America, Europe and Rest of World. We also maintain corporate and other operations, which constitute a separate reportable segment, that support or are ancillary to our automotive and other operations. Our external sales by reporting segment for 2012 and 2011 were as follows:

REPORTING SEGMENT	2012		2011
	(U.S. dollars, in millions)
North America	$	16,241	$	14,764
Europe		12,563		12,429
Rest of World		2,010		1,506
Corporate and Other		23		49
Total	$	30,837	$	28,748

Magna International Inc. - AIF 2

Geographic Markets and Customers

North America

Our North American production sales accounted for approximately 50% and 49% of our consolidated sales in 2012 and 2011, respectively. Our primary customers in North America in 2012 included BMW, Daimler, Fiat-Chrysler, Ford, General Motors, Honda, Hyundai-Kia, Mazda, Renault-Nissan, Toyota and Volkswagen.

Our top ten North American programs/platforms based on 2012 production sales were:

		CAPABILITIES REPRESENTED
CUSTOMER(S)	VEHICLE(S)	BODY & CHASSIS SYSTEMS	INTERIOR SYSTEMS	SEATING SYSTEMS	EXTERIOR SYSTEMS	POWERTRAIN SYSTEMS	VISION SYSTEMS	ELECTRONIC SYSTEMS	CLOSURE SYSTEMS
General Motors	Full-Size SUVs & Pick-up Trucks	¢	¢		¢	¢	¢		¢
Fiat-Chrysler, Volkswagen	Chrysler Town & Country, Dodge Grand Caravan, Lancia Grand Voyager, Ram Cargo Van, VW Routan	¢	¢	¢	¢	¢	¢	¢	¢
General Motors	Chevrolet Equinox, GMC Terrain	¢		¢	¢	¢	¢	¢	¢
Fiat-Chrysler	Jeep Grand Cherokee	¢	¢	¢	¢	¢	¢	¢	¢
General Motors	Buick Enclave, Chevrolet Traverse, GMC Acadia	¢	¢		¢	¢	¢	¢	¢
Ford	Ford Escape	¢	¢	¢	¢	¢	¢	¢	¢
Ford	Ford Edge, Lincoln MKX	¢		¢	¢	¢	¢	¢	¢
Daimler	Mercedes-Benz M-Class, R-Class, GL-Class	¢			¢	¢	¢	¢	¢
General Motors	Chevrolet Cruze	¢	¢	¢	¢	¢	¢	¢	¢
Ford	F-Series, Lincoln Mark LT	¢	¢		¢	¢	¢	¢	¢

Note: Capabilities represented may not be on each vehicle or each trim level of each vehicle. Additionally, our capabilities in each product area range from components to full systems, only some of which may be represented on any particular program.

Magna International Inc. - AIF 3

Europe

Our European production and vehicle assembly sales accounted for approximately 39% and 37% of our consolidated sales in 2012 and 2011, respectively. Our primary customers in Europe in 2012 included Aston Martin, BMW, Daimler, Fiat-Chrysler, Ford, Geely, General Motors, Honda, Hyundai-Kia, PSA Peugeot Citroën, Renault-Nissan, Tata Motors, Toyota, and Volkswagen.

Our top ten European programs/platforms based on 2012 production and vehicle assembly sales were:

			CAPABILITIES REPRESENTED
CUSTOMER(S)	VEHICLE(S)	ENGINEERING & ASSEMBLY	BODY & CHASSIS SYSTEMS	INTERIOR SYSTEMS	SEATING SYSTEMS	EXTERIOR SYSTEMS	ROOF SYSTEMS	POWERTRAIN SYSTEMS	VISION SYSTEMS	ELECTRONIC SYSTEMS	CLOSURE SYSTEMS
BMW	MINI Countryman, MINI Paceman	¢	¢	¢		¢		¢	¢		¢
Daimler	Mercedes-Benz G-Class	¢	¢	¢			¢	¢	¢
BMW	MINI One/Cooper		¢	¢		¢		¢	¢		¢
Porsche, Volkswagen	Porsche Cayenne, VW Touareg		¢	¢				¢	¢		¢
Daimler	Mercedes-Benz C-Class		¢	¢		¢		¢	¢		¢
Volkswagen	VW Tiguan		¢	¢		¢		¢	¢	¢
PSA Peugeot Citroën	Peugeot RCZ	¢	¢	¢	¢	¢		¢	¢
Volkswagen	Audi Q5		¢	¢	¢			¢	¢		¢
Daimler	smart fortwo		¢		¢			¢	¢	¢	¢
Volkswagen	VW Transporter/ Multivan		¢		¢	¢		¢	¢	¢

Note: Capabilities represented may not be on each vehicle or each trim level of each vehicle. Additionally, our capabilities in each product area range from components to full systems, only some of which may be represented on any particular program.

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Rest of World

Our Rest of World production sales accounted for approximately 6% and 5% of our consolidated sales in 2012 and 2011, respectively. Our primary customers in Rest of World in 2012 included Brilliance Auto, BMW, Chery Automobile, Daimler, Fiat-Chrysler, First Automobile Works, Ford, Geely, General Motors, Great Wall Motor Company, Honda, Hyundai-Kia, Isuzu Motors, PSA Peugeot Citroën, Renault-Nissan, Shanghai Automotive, Suzuki, Toyota, Volkswagen and Yulon Motors.

Customer Concentration

Worldwide sales to our six largest customers represented the following proportions of our consolidated sales in 2012 and 2011:

CUSTOMER	2012			2011
General Motors		19	%		22	%
Fiat-Chrysler		15	%		13	%
BMW		13	%		15	%
Ford		13	%		12	%
Volkswagen		12	%		11	%
Daimler		11	%		10	%
Other		17	%		17	%
Total		100	%		100	%

RECENT TRENDS IN THE AUTOMOTIVE INDUSTRY

A number of general trends have been impacting the automotive industry and our business in recent years, and are expected to continue, including the following:

Prevalence of Vehicles Built From High-Volume Global Vehicle Platforms

Automobile manufacturers continue to increase the range of vehicles built from high-volume global platforms. This trend allows automobile manufacturers to: realize economies of scale; remain competitive; differentiate their vehicles for different markets; expand the number of market segments in which they compete; respond to lifestyle trends; and meet the tastes of consumers. This trend provides Tier 1 automotive suppliers increased opportunities to supply larger volumes of products which may be common across multiple vehicles built from the same platform. However, the consolidation of platforms to fewer global platforms may increase warranty/recall risks and amplify the impact on suppliers of failing to win programs built from global platforms.

Growth of the Automotive Industry Outside of Our Traditional Markets

The local demand for vehicles in China, India, Brazil, Russia and other growing markets outside of North America and Western Europe continues to increase. This increasing local demand has helped boost the local automotive industry in these countries and has attracted investments in manufacturing from North American, European and Asian-based automobile manufacturers, through stand-alone investments and/or joint ventures with local partners. More recently, there has been increasing migration of component and vehicle design, development and engineering to certain of these markets. Automotive suppliers have followed and will likely continue to follow the expansion of automobile manufacturers into these regions. While this expansion may provide new opportunities for automotive suppliers, it may also result in exposure to a number of risks of conducting business in such markets, including those discussed under “RISK FACTORS”.

Growth of A to C Vehicle Segments

The local demand for vehicles in growing markets consists primarily of demand for micro (A segment), sub-compact (B segment) and compact (C segment) cars. Automobile manufacturers that have established product offerings in these vehicle segments, and their preferred suppliers, will likely have an advantage in realizing the opportunities available in these higher growth vehicle segments.

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Governmental Regulation and Enforcement

The automotive industry is subject to greater governmental regulation seeking to promote higher corporate average fuel economy, reduce vehicle emissions, increase vehicle recyclability and improve vehicle safety. While increased regulation generally presents new challenges for the automotive industry, it may also provide opportunities for automotive suppliers that produce and market new products and technologies.

In addition to greater regulation, the automotive industry has in recent years been the subject of increased government enforcement of antitrust and competition laws, particularly by the United States Department of Justice (the “DoJ”) and the European Commission. Currently, investigations are being conducted in several product areas, including passenger safety airbags, instrument panels and wire harnesses.

Increasing Consumer Demand For, and Industry Focus on, Fuel-Efficient and Environmentally-Friendly Vehicles

Periodically elevated fuel prices, growing consumer awareness of environmental issues and other factors have increased consumer demand for vehicles that are more fuel-efficient and environmentally-friendly. As a result, automobile manufacturers are becoming increasingly focused on the development and manufacture of hybrid, electric and other alternative-energy vehicles. This trend is also manifesting itself in the increased use of materials such as aluminum, plastic, advanced high-strength steels and other materials which are designed to reduce vehicle weight and increase fuel efficiency. Automotive suppliers which emphasize technological innovation and broad product capabilities are expected to benefit from the growing demand for these features.

Growth of Cooperative Arrangements

In order to achieve economies of scale and defray development costs, competing automobile manufacturers are increasingly entering into cooperative alliances and arrangements relating to: shared purchasing of components; joint engine, powertrain and/or platform development and sharing; and other forms of cooperation. Cooperation among competing automobile manufacturers is expected to continue.

Supplier Consolidation

Consolidation in the automotive supply industry is driven by a number of factors, including: periodically weak economic conditions; manufacturing over-capacity; significant capital investments required in the automotive sector; continued growth in global platforms; sourcing strategies of automobile manufacturers and their efforts to optimize the stability of their supply chains; and the scale advantages of larger suppliers. This trend is expected to continue in the future, and could intensify, particularly during periods of economic deterioration.

Pricing Pressures

Automobile manufacturers continue to seek ways to reduce their costs of producing vehicles as competition for market share intensifies. In addition to seeking cost efficiencies in their own production, marketing and administrative structures, automobile manufacturers have placed significant pressure on automotive suppliers to reduce the price of their components, assemblies, modules and systems. This pricing pressure has historically come in different forms, including:

• long-term agreements containing pre-determined price reductions for each year of a vehicle production program;

• retroactive price reductions and annual price reduction demands above and beyond those contained in any long-term agreement;

• pressure to absorb more design and engineering costs previously paid for by the automobile manufacturer and to recover these costs through amortization in the piece price of the particular components designed or engineered by the supplier;

• pressure to assume or offset commodities cost increases, including steel and resins;

• refusal to increase the price paid for supplier products to fully offset inflationary cost increases in the manufacturing process; and

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• pressure to own and/or capitalize tooling and recover these costs through amortization in the piece price of the components produced by this tooling.

In many cases, automotive suppliers bear the risk of not being able to fully recover the design, engineering and tooling costs in circumstances where vehicle production volumes are lower than anticipated or programs are terminated early. In addition, automobile manufacturers continue to request that their automotive suppliers bear the cost of the repair and replacement of defective products that are either covered under the automobile manufacturers’ warranty and/or are the subject of a recall.

Some of these trends may present risks to our operations, profitability and/or financial condition. These risks are described in detail under “ITEM 3. DESCRIPTION OF THE BUSINESS – RISK FACTORS”, which all readers are strongly encouraged to consider carefully.

OUR BUSINESS STRATEGY

Our Board of Directors (“Board”) and Executive Management continue to apply a more disciplined, formalized approach to our business strategy. In connection with this, the Board and Executive Management seek to ensure that our capital is employed in an efficient and effective way that best supports our strategic priorities. The development, refinement and implementation of our business strategy seeks to produce sustainable, long-term growth and allow us to strengthen our position as a leading global automotive supplier.

The overriding principles guiding our strategic focus are encapsulated in our vision statement:

We aim to be our customers’ preferred global supplier partner for the automotive industry, by delivering the best value built on innovative products and processes and World Class Manufacturing. We strive to be the employer of choice, an ethical and responsible corporate citizen and a superior long-term investment for our shareholders.

In order to achieve this vision, we are focused on the following strategic and operational priorities:

Accelerated Focus on Innovation and Technology

We seek to be recognized by our customers as an industry leader in product, process and materials innovation. In order to help achieve this strategic goal, we intend to continue to direct significant resources to commercialize new products and processes which will provide additional value to our customers in such areas as:

• weight reduction;

• fuel efficiency;

• safety and comfort; and

• hybrid and alternative-energy propulsion.

Refining our Product Portfolio

We currently possess a major market share in a number of the product areas in which we compete. However, our strategic objective is to be among the technology or market share leaders in each of our product capabilities. In making decisions regarding the allocation of capital, we consider how the investments support our product portfolio and impact the returns expected to be generated from those investments. In some cases, we may consider exiting product areas where our competitive position is not sufficiently strong, where our level of investment return does not to justify continued investment, or where we have determined that our capital resources could be better utilized elsewhere in our business.

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Focus on Growing Markets

In recognition of the fact that much of the future growth potential in the automotive industry lies in growing markets outside of North America and Western Europe, we will continue to focus on markets that have or are expected to become key regions for vehicle production, including China, India, Eastern Europe and other non-traditional markets for us. This strategy allows us to support the global needs of our traditional North American and European customers and to make inroads with other customers. While emphasizing growing markets, we remain focused on ensuring that we can successfully compete in products that can be manufactured globally to take advantage of the continuing trend towards building high volumes of vehicles from single global platforms.

Diversifying our Automotive Sales Base

Although we sell to all of the world’s largest automobile manufacturers and are present in all significant automobile producing regions in the world, a substantial proportion of our business has traditionally been with the Detroit 3 automobile manufacturers in North America and the German-based automobile manufacturers in Western Europe (BMW, Daimler and Volkswagen). Although we aim to maintain and grow our business with our traditional customers, we seek to further diversify our sales, as profitable opportunities arise, as follows:

Region:	by increasing the proportion of our business in non-traditional markets for us,
Customer:	by increasing the proportion of our business with an expanded customer base, including with Asian-based automobile manufacturers, and
Vehicle Segment:	by increasing the proportion of our business in the A to C (micro to compact car) segments.

We aim to further diversify our sales base in coming years by: continuing to demonstrate our technical capabilities; pursuing new programs from our customers, with particular emphasis on global platforms and expansion in non-traditional markets; pursuing takeover business to take advantage of consolidation and cooperation in the automotive supply industry - while maintaining our position in our traditional markets through innovation in technology, processes and products.

Pursuing Business on Global Vehicle Platforms

The proliferation of global vehicle platforms and increased platform and component sharing among automobile manufacturers requires global suppliers with the financial strength, as well as manufacturing, engineering and program management footprint to support the regional product development activities of our customers and produce common products simultaneously in multiple regions of the world. We believe that our strong financial position, operational scale, technological know-how and global customer relationships support us in realizing the opportunities presented by the growth in global platforms and component sharing.

Focus on Operational Improvement

We continue to place strong emphasis on making adjustments to our existing manufacturing footprint to strengthen our competitive position and turning-around underperforming Divisions, particularly in Western Europe and South America. In Europe, as a result of continuing economic uncertainty, recent customer announcements related to plant closures, the unprofitability of certain facilities and the level of future booked business, we determined that restructuring would have to be completed in certain European markets in order to remain cost competitive over the long-term. In certain of our South American operations, we continue to face and to attempt to mitigate inflationary cost increases that are having an adverse impact on our operating results.

Continuing Implementation of World Class Manufacturing

Our goal is to be recognized as a leader in “World-Class Manufacturing”. Our global operating units have embraced this goal and we are committed to achieving “best in class” performance in all areas of manufacturing at each of our operating Divisions globally. We monitor our progress in achieving our goal of world-class manufacturing using an assessment process similar to that used by our customers in evaluating their suppliers, supplemented with elements we view as critical to achieving world-class manufacturing in accordance with our Operational Principles.

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Acquisitions

We continue to consider acquisitions that support our overall business strategy including: expanding our customer base; strengthening our position in priority product areas; expanding in growing markets; and acquiring innovative technologies. For example, our acquisitions in 2012 were aimed at enhancing our capabilities in high pressure castings and automotive pumps. Notwithstanding our acquisitions strategy, we expect that a considerable amount of our future expansion will continue to occur through organic growth. For a description of the acquisitions we have completed in the past three fiscal years, see “RECENT DEVELOPMENTS IN OUR BUSINESS – Acquisitions and Divestitures.”

Leadership Development

A key element of the success of our business remains our ability to attract, retain and develop skilled personnel to match the pace of our global growth. We have implemented and continue to enhance our Leadership Development System to help identify, train and develop future leaders with the skills and expertise needed to manage a complex, global business.

Creating Long-Term Shareholder Value

We believe that success in respect of the elements of strategy discussed above, together with the following actions will assist us in creating long-term shareholder value:

• reinforcing our unique, decentralized, entrepreneurial corporate culture;

• maintaining our executive compensation system which directly links executive compensation and corporate performance, as measured by profitability;

• maintaining our employee equity participation and profit sharing plans;

• maintaining a strong financial position in order to help ensure we have the liquidity needed to operate our business, including through cyclical downturns, as well as the flexibility to prudently invest to grow our business;

• allocating capital resources strategically;

• continuing to focus on growing earnings; and

• returning an appropriate amount of capital to shareholders in the form of dividends and share repurchases.

We believe that continued implementation of our business strategy positions us well to: remain a valued supplier of choice to automotive manufacturers; take advantage of future growth and opportunities in the automotive industry; and capitalize on the recent trends in the automotive industry discussed above; all of which should contribute to earnings growth and, ultimately, creation of long-term shareholder value.

OPERATING STRUCTURE AND PRINCIPLES

Decentralization

We follow a corporate policy of functional and operational decentralization, which we believe increases flexibility, customer responsiveness and productivity. Our manufacturing and assembly operations are conducted through Divisions, each of which is an autonomous business unit operating within pre-determined guidelines. Each Division is a separate profit center under the authority of a general manager who has the discretion to determine rates of pay, hours of work and sources of supply, within the framework of our Corporate Constitution, our Employee’s Charter, our Operational Principles and our corporate policies. Our Divisions are aligned by geographic region in each of our product areas. Within a number of our product areas, we have regional management teams that are responsible for maintaining key customer, supplier and government contacts in their respective markets, as well as centrally managing key aspects of our operations while permitting our Divisions enough flexibility through our decentralized structure to foster an entrepreneurial environment. These regional management teams are also supported by corporate teams in each region that provide support and assistance with respect to specific functional areas. Our corporate management team allocates capital, coordinates our mergers and acquisitions and strategic alliances strategy, ensures customer and employee satisfaction and manages succession planning. Executive Management also interfaces with the investment community and is responsible for our long-term strategic planning and future growth, as well as monitoring the performance of the management of our operating Groups.

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Operating Principles

We are committed to a number of operating principles, including employee equity participation and profit sharing, incentive-based management compensation and an employee charter. See “ITEM 3. DESCRIPTION OF THE BUSINESS – HUMAN RESOURCES”.

RECENT DEVELOPMENTS IN OUR BUSINESS

Acquisitions and Divestitures

We have completed a number of acquisitions, divestitures, financings and securities/corporate transactions in the last three years, including those listed below. None of these acquisitions constitute “significant acquisitions” within the meaning of such term in National Instrument 51-102 – Continuous Disclosure Obligations of the Canadian Securities Administrators.

2012

In December 2012, we acquired ixetic Verwaltungs GmbH (“ixetic”), a manufacturer of automotive vacuum, engine and transmission pumps, which has operations in Germany, Bulgaria and China as well as representation in Brazil, India, Japan and the United States. The purchase price for the ixetic acquisition was $395 million (net of $64 million cash acquired). ixetic has sales primarily to BMW, Daimler, Volkswagen, Schaeffler, ZF, Ford, Fiat-Chrysler, Renault-Nissan and Toyota.

In October 2012, we acquired from a joint venture partner, the remaining 50% interest in STT Technologies Inc. (“STT”), a leading supplier of transmission and engine related oil pumps with operations in Canada and Mexico. The consideration paid for the STT acquisition was $42 million in cash (net of $13 million cash acquired).

In August 2012, we acquired the controlling 27% interest in Magna E-Car Systems L.P. (“E-Car”) from a company affiliated with the Stronach Group. E-Car’s component business has been integrated into our Magna Powertrain operating unit, in order to take advantage of opportunities for the electrification of vehicle powertrain systems. E-Car’s battery pack business and vehicle integration operations have been integrated into our Magna Steyr operating unit. The consideration for the E-Car acquisition was $56 million in cash (net of $19 million in cash acquired). The purchase was reviewed, negotiated and approved by our independent directors with the benefit of independent legal advice from Fasken Martineau DuMoulin LLP, independent financial advice from TD Securities Inc. (“TD”) and an independent valuation prepared by PricewaterhouseCoopers LLP (“PwC”). The purchase price represents the midpoint of the valuation range determined by PwC. In addition, TD delivered a fairness opinion to the independent directors to the effect that the transaction is fair, from a financial point of view, to Magna.

In June 2012, we re-acquired an interior systems operation (the “Business”) located in Germany that we had previously sold in 2011. The re-acquisition of the Business resulted in acquired cash of $19 million (net of $1 million cash paid).

In January 2012, we acquired BDW technologies group, a structural casting supplier of aluminium components, which has operations in Germany, Poland and Hungary. BDW has sales primarily to Volkswagen, Daimler, Ferrari and ZF. The total consideration for this and other small acquisitions was $182 million, consisting of $42 million paid in cash (net of cash acquired) and $140 million of assumed debt.

2011

In November 2011, we acquired ThyssenKrupp Automotive Systems Industrial do Brasil Ltda (“TKASB”), which consists of four manufacturing facilities in Brazil that assemble chassis structural components and modules. TKASB has sales to Ford, Fiat, Renault-Nissan, Honda and PSA Peugeot Citroën.

In August 2011, we acquired Grenville Castings Ltd., a structural casting supplier of aluminum components located in Canada with sales primarily to Ford and General Motors.

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In June 2011, we acquired Continental Plastics Co., a supplier of interior products, mainly door panel and seat back assemblies. The acquired business is located in the United States with sales primarily to General Motors.

In May 2011, we acquired a 51% interest in Wuhu Youth Tongyang Auto Plastic Parts Co., Ltd., a supplier of exterior products, mainly front and rear bumpers. The acquired business is located in China with sales primarily to Chery Automobile Co. Ltd.

In January 2011, we acquired Automobiltechnik Dürbheim, a manufacturer of tapping plates which assist in the fastening of bolts. The acquired business is located in Germany with sales to various automobile manufacturers.

The total consideration for these acquisitions in 2011 was $157 million, consisting of $120 million paid in cash (net of cash acquired) and $37 million of assumed debt.

2010

In December 2010, we completed the following acquisitions:

• Resil Minas, a supplier of seat frames and stampings. Resil Minas is located primarily in Brazil and has various customers that include Fiat, Ford, General Motors, Volkswagen, Iveco and PSA Peugeot Citroën;

• Pabsa S.A., a supplier of complete seats, foam products, trim covers and seat structures. Pabsa has three production facilities in Argentina; and

• Erhard & Söhne GmbH, a manufacturer of fuel tanks for commercial vehicles and other specialty tanks. Erhard & Söhne is located in Germany and has sales to various customers including Man, Daimler and Scania.

In February 2010, we acquired Karmann Japan Co. Ltd., a convertible roof system supplier, which was combined with our roof system capabilities in Japan.

The total consideration for the Resil Minas, Pabsa, Erhard & Söhne and Karmann acquisitions and certain other acquisitions was $120 million, consisting of $106 million paid in cash (net of cash acquired) and $14 million of assumed debt.

In March 2010, we sold our Optera business which manufactured coated glass for touch screens used in non-automotive applications for approximately $34 million. The Optera business included our 50% joint venture interest in Optera Technology (Xiamen) Co. Ltd. (“Optera China”). The purchaser, TPK Holding Co., Ltd, had been our joint venture partner in Optera China.

Financings and Securities/Corporate Transactions

Normal Course Issuer Bid

On November 9, 2012, the TSX accepted our Notice of Intention to Make a Normal Course Issuer Bid relating to the purchase of up to 12,000,000 Magna Common Shares (the “Bid”), representing approximately 5.2% of our “public float” of Common Shares. The primary purposes of the Bid are purchases for cancellation, as well as purchases to fund our stock-based compensation awards or programs and/or our obligations to our deferred profit sharing plans. The Bid commenced on November 13, 2012 and will terminate no later than November 12, 2013. All purchases of Common Shares made on the TSX or the NYSE are made at the market price at the time of purchase in accordance with the rules and policies of the TSX or in compliance with Rule 10b-18 under the U.S. Securities Exchange Act of 1934, respectively. As a result of an amendment to our Bid and pursuant to an issuer bid exemption order issued to us by the Ontario Securities Commission effective March 22, 2013, we are also permitted to make off-exchange purchases by way of private agreement from two arm’s length, third-party sellers at a discount to prevailing market prices of our Common Shares. Any purchases made by way of off-exchange private agreements are included in computing the number of common shares purchased under our Bid. As at March 26, 2013, we have purchased 2,021,017 Common Shares pursuant to the Bid. Under our previous normal course issuer bid which commenced on November 11, 2011 and terminated on November 10, 2012, we purchased 3,668,430 million Common Shares, of which 3,200,800 were cancelled and the remaining 467,630 were retained for purposes of funding our stock-based compensation awards or programs and/or our obligations to our deferred profit sharing plans.

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Global Credit Facility

In July 2011, we entered into a $2.25 billion syndicated four-year revolving credit facility that replaced an approximately $2.0 billion revolving credit facility that had been set to expire on July 31, 2012. The facility, which is available to Magna and its subsidiaries in North America, Europe and Asia, was subsequently amended in May 2012 to extend the maturity date from July 8, 2015 to July 8, 2016.

Plan of Arrangement To Eliminate Dual-Class Share Structure

On August 31, 2010, following approval by our then Class A Subordinate Voting and Class B Shareholders, we completed a court-approved plan of arrangement (the “Arrangement”) in which our dual-class share structure was eliminated. In addition, the transaction: (i) set a termination date and declining fee schedule for the consulting, business development and business services contracts we have in place with our Founder, Frank Stronach (including entities affiliated with him); and (ii) established a partnership with certain affiliates of the Stronach family (the “Stronach Group”) to pursue opportunities in the vehicle electrification business, through E-Car. The Stronach Group interest in E-Car was subsequently acquired by Magna in August 2012, as discussed above in ITEM 2. GENERAL DEVELOPMENT OF OUR BUSINESS – Acquisitions and Divestitures”.

As part of the Arrangement, we purchased for cancellation all 726,829 outstanding Class B Shares, which were held indirectly by the Stronach Group, for $300 million in cash and 9 million newly issued Class A Subordinate Voting Shares (18 million Common Shares following the stock split discussed below). In addition, our Articles were amended to remove the Class B Shares from the authorized capital and to make non-substantive consequential changes, including renaming the Class A Subordinate Voting Shares as Common Shares and eliminating provisions which no longer applied due to the elimination of the Class B Shares.

Stock Split

On November 24, 2010, we completed a two-for-one stock split (the “Stock Split”), implemented by way of a stock dividend, as a result of which shareholders of record at the close of business on November 16, 2010 received one additional Common Share for each Common Share held. All of our equity-based compensation plans and arrangements were adjusted to reflect the issuance of additional Common Shares pursuant to the Stock Split.

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ITEM 3. DESCRIPTION OF THE BUSINESS

We are a leading global automotive supplier with 313 manufacturing operations and 88 product development, engineering and sales centres in 29 countries, as at December 31, 2012.

Our success is primarily dependent upon the levels of North American and European car and light truck production by our customers and the relative amount of content we have on various programs. Vehicle production is affected by consumer demand, which in turn is significantly impacted by consumer confidence. A worsening of economic and political conditions, including through rising interest rates or inflation, high unemployment, increasing energy prices, declining real estate values, increased volatility in global capital markets, sovereign debt concerns, the potential for a “currency war”, an increase in protectionist measures, international conflicts and/or other factors may result in lower consumer confidence. A number of other factors, discussed under “RISK FACTORS”, also affect our success, including such things as relative currency values, commodities prices, price reduction pressures from our customers, the financial condition of the automotive supply base and competition from manufacturers with operations in low-cost countries.

PRODUCTS AND SERVICES

Despite operating our business on a geographic basis, we possess product and service capabilities which span across such geographic regions. Details regarding our product and service capabilities follow:

INTERIOR SYSTEMS

We design, engineer and manufacture interior components and systems for the global automotive industry.

	Sidewall and Trim Systems		Cargo Management Systems		Cockpit Systems
	•	Interior Garnish Trim	•	Sliding and Stationary Load Floors	•	Cockpit Modules
	•	Door and Side Panels	•	Accessible Floor Storage Bins	•	Instrument Panels
	•	Parcel Shelf & Liftgate Trim	•	Multi-Level Shelf Systems	•	Floor Consoles
			•	Integrated Cargo Organizers	•	Glove Box Doors
	Overhead Systems
	•	Complete Overhead Systems
	•	Headliner Substrates
	•	Grab Handles & Lighting
	•	Overhead Consoles

The primary technologies and processes involved in the manufacturing of interior components and systems include: low pressure and injection molding; compression molding; vacuum forming; slush molding; spray urethane; as well as manual and automated assembly and sequencing.

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SEATING SYSTEMS

We develop and manufacture complete seating solutions and seat hardware systems for the global automotive industry. Our capabilities range from market and consumer research, full concept development, design and engineering, testing and validation to manufacturing.

	Complete Seating Systems		Seat Structures and Mechanisms		Foam & Trim Products
	•	Reconfigurable Seat Solutions	•	Seat Structures (including High Strength Steel, Aluminum and Magnesium)	•	Conventional Foam
	•	In-Vehicle Stowable Seats			•	Recycled Foam
	•	Ingress/Egress Solutions	•	Manual and Power Recliners	•	Renewable Foam Formulations
	•	Comfort Systems	•	Manual and Power Adjusters (Fore/Aft and Lift)	•	Black Foam
	•	Lightweight Seat Solutions			•	Dual Firmness Foam
	•	Thin Seating	•	Seat Attach Latches	•	Trim Covers (Cloth & Leather)
	•	Safety Systems Integration	•	Specialty Mechanisms (Stow-in-Floor;
				Stand Up; Reversible; Push-Button
				Entry; Seat Memory)

The technologies and processes used in the manufacture of seating and seat hardware systems include: traditional “cut and sew” technology; manual and automated assembly; as well as our patented Multi-Material Mold-In-Place™ technology.

CLOSURE SYSTEMS

We engineer and manufacture closure systems and modules for the global automotive industry.

	Door Modules		Power Closure Systems		Engineered Glass
	•	Structural Door Modules	•	Power Sliding Doors	•	Manual and Power Truck & Van Sliding Windows
	•	Sealed Modules	•	Power Liftgates	•	Front and Rear Quarter Windows
	•	Hardware Trim Modules	•	Power Decklids	•	Liftglass Assembly
	•	Integrated Trim Modules	•	Anti-Pinch Strips	•	Windshields and Backlights
	•	Integrated Inner Panel Module			•	Fixed Roof Glass Modules
	•	Liftgate and Tailgate Modules	Latching Systems		•	Bus Windows
	•	Mid-Door Modules
	•	Complete Doors	•	Side Door and Sliding Door Latches	Electronic Features
			•	Hood and Liftgate Latches	•	Electronic Control Unit Design
	Window Systems		•	Tailgate and Decklid Latches
			•	Cargo Door Latches	•	Obstacle Detection and Anti-Pinch
	•	Dual Rail Cable and Drum Systems	•	Rear Access Door Latches	•	Non-Contact Sensing
	•	Single Rail Cable and Drum Systems
	•	Convertible Quarter Glass	Driver Controls		Lighting Systems
	•	Arm and Sector Systems	•	Adjustable Pedals	•	Front Lighting
	Sealing Systems		•	Fixed Pedals	•	Rear Lighting
	•	Window Surround Modules	•	Park Brakes	•	Centre High Mount Stop Lamps
	•	Backlight, Belt, Windshield, Door	Handle Assemblies
		Surround and Roof Drip Moldings
	•	Door, Inner and Outer Belt Seals	•	Inside and Outside Handles
	•	Complete Convertible Sealing Systems

The primary processes involved in the manufacture of closure systems and modules include: light stamping; injection molding; extrusion processes, such as co-extrusion, thermoset and thermoplastic extrusion; as well as manual and automated assembly.

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BODY AND CHASSIS SYSTEMS

We provide metal body systems, components, assemblies and modules, including complete vehicle frames, chassis systems and body-in-white systems, as well as related engineering services, for the global automotive industry.

	Body Systems		Chassis Systems		Engineering and Tooling
	•	Complete Body-In-White	•	Crossmember Assemblies	•	Program Management
	•	Floor Pans	•	Radiator Supports	•	Program Engineering
	•	Underbody Assemblies	•	Shock Towers	•	Computer-Aided Engineering (CAE)
	•	Door, Hood and Deck Assemblies	•	Engine Cradles		Design Verification
	•	Roof Panels	•	Front and Rear Sub-Frame Assemblies	•	Prototype Build
	•	Fender and Quarter Panels	•	Front and Rear Suspension Modules	•	Testing and Validation
	•	Tailgate and Liftgate Assemblies	•	Control Arms	•	Tooling and Automated Systems
	•	A, B, C and D Pillars	•	Frame Rails	•	Research and Development
	•	Bumper Beams	•	Full Frame Assemblies
	•	Door Intrusion Systems
	•	Oil Strainers	Renewable Energy Structures
	•	Heat Shields
			•	Solar Energy Racking Systems

We employ a number of different forming technologies such as: hydroforming; stamping; hot stamping; roll forming; aluminum casting; draw bending; advanced welding technologies; as well as finishing technologies such as:

e-coating; heat treating; and high temperature wax coating.

VISION SYSTEMS

We design, engineer and manufacture vision systems for the global automotive industry.

	Interior Mirrors		Exterior Mirrors		Actuators
	•	Electrochromic (self-dimming) Mirror Glass	•	Electrochromic (self-dimming) Mirror Glass	•	Power Folding and Power Extending
					•	Exterior Glass Movement
	•	Telematics	•	Framed and Frameless Glass	•	Interior Mirror Adjustment
	•	Compass and Temperature	•	TurnSignal Lighting	•	Active Bend Lighting
	•	Displays	•	Power Folding and Power Extending Technologies	•	Heating, Ventilating and Air Conditioning (HVAC)
	•	Sensor Integration
	•	Bluetooth and Hands Free Connectivity	•	Ground Illumination
	•	Navigation	•	Integrated Blind Spot Detection	Electronic Vision Systems
	•	Microphone	•	Integrated Cameras
	•	Automatic Garage Door Openers	•	Mirrors with Integrated Blind Zone Field of View	•	Full-color displays (including Backup Displays)
	•	Electronic Toll Collection
			•	Body-Matched Paint	•	Side Blind Zone Assist
			•	Lights for Rear and Side Visibility	•	Lane Change Assist

The primary processes involved in the manufacture of our vision products include: electronics integration; injection molding; painting; as well as manual and automated assembly.

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ELECTRONIC SYSTEMS

We design, engineer and manufacture electronic components and sub-systems for the global automotive industry.

	Driver Assistance and Safety Systems	Engine Electronics and Sensors		Body Systems and Human-Machine Interfaces (HMI)
	•    Image Vision Systems	•	Liquid Level Sensors	•    Body Controller
	•    Machine Vision Systems	•	Glow Plug Control Units	•    Consoles and Displays
	•    Active Pedestrian Protection	•	Cooling Fans	•    Trailer Modules
	Intelligent Power Systems	Industrial Products		Hybrid & Electric Vehicle Components/Systems)
	•    Smart Actuators	•	Joysticks	•    Traction Motors
	•    Motor Controllers	•	Fork-Lift-Truck Electronic Units	•    Inverters
	•    Relays			•    Control Units

The primary processes involved in the manufacture of electronics products include: surface mount placements of electronic components on printed circuit boards; as well as manual and automated assembly of electronic modules.

EXTERIOR SYSTEMS

We design, engineer and manufacture various exterior components and systems for the global automotive and commercial truck product markets.

	Front and Rear Fascia Systems		Class A Composite Panels		Modular Systems
	•	Front and Rear Fascias	•	Body Panels, Door Panels and Quarter Panels	•	Front and Rear End Modules
	•	Energy Management Systems		Carbon Fiber Panels	•	Liftgate Modules
	•	Active Grille Systems	•	Fenders and Cab Skirts	•	Soft Tops
			•	Hoods, Roofs & Decklids	•	Roof Modules
	Exterior Trim		•	Liftgates and Tailgates	Under Hood and Underbody Components
	•	Body Side and Roof Ditch Moldings	•	Pickup Boxes
	•	Wheel Opening Moldings	•	Sunvisors
	•	Rocker Panels and Claddings			•	Battery Boxes
	•	Spoilers and Grilles	Structural Components		•	Oil and Transmission Pans
	•	Decklid and Pillar Appliques			•	Engine Valve Covers
	•	Roof Racks/Rails	•	Firewalls & Engine Tunnels	•	Fan Shrouds
	•	Static and Automated Running Boards	•	Cab and Trailer Floors	•	Underbody Shields
	•	Tonneau Covers	•	Cab Structure	•	Wiper Support Systems
			•     •	Front End Carriers Cowls
			•	IP Supports	Sheet Molding Compound Material
			•	Bumper Beams	•	EpicBlendSMC™ sheet molding
						compound in multiple formulations

We utilize a number of different technologies and processes in connection with these products, including: molding technologies, such as injection molding, structural reaction injection, reaction injection, compression and thermoset molding; metal forming processes, such as metal stamping, roll forming, tube forming and stretch bending; finishing processes, including painting, hardcoating, chrome plating, vacuum metallization and anodizing; and manual and automated assembly and sequencing.

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POWERTRAIN SYSTEMS

We design, engineer and manufacture powertrain systems and components for the global automotive industry.

	Driveline Systems		Fluid Pressure Systems		Metal-Forming Solutions
	•	Transfer Cases	•	Engine Oil Pumps and Water Pumps	•	Transmission Clutch Modules
	•	Coupling Systems	•	Tandem Pumps	•	Clutch Hubs & Housings
	•	Rear Drive Modules (RDM)	•	Transmission Oil Pumps	•	Die Casting Products
	•	Front and Rear Axle Drives	•	Vacuum Pumps	•	Accessory Drives
	•	Power Take Off Units	•	ePumps	•	Oil Pan Modules
	•	eDrive and eRAD (Electric Rear Axle Drive) Products	•	Chassis Pumps	•	Flexplates
			•	Power Steering Pumps	•	Planetary Carriers
			•	Engine Oil Pressure Controls	•	Geared Products
	Engineering Services &		•	Mass Balancer Modules	•	Steel Pulleys
	System Integration		•	Integrated Engine Front Cover Modules	•	Dampeners
	•	Engine & Drivetrain Engineering
	•	Commercial & Special Vehicle Engineering
	•	Engine Testing Services
	•	ePowertrain and Vehicle Integration

We employ a variety of different manufacturing capabilities and processing technologies in our powertrain operations, including: metal die-forming; flow-forming; stamping and spinning; synchronous roll-forming; die-spline rolling; precision-heavy stamping; fineblanking; aluminum die casting and precision machining; magnesium machining; plastic injection molding and plastic welding; soft and hard processing of gear wheels and shafts; rotary swaging; hardening; laser welding; manual and automated assembly; and end-of-line testing.

We conduct some of our powertrain operations through joint ventures, including a non-controlling, 50% voting (76.7% equity) partnership interest in the Litens Automotive Partnership (“Litens”), a partnership with certain members of its senior management. Litens is a leading supplier of highly-engineered drive subsystems and components. Its product offerings include accessory drive systems and products, such as auto tensioners and idlers, overrunning alternator decoupler assemblies, Torqfiltr™ crankshaft vibration control technology, isolating crank pulley assemblies and clutched waterpump pulleys and assemblies; timing drive systems and products, such as belt and chain tensioners and idlers, SmartSprocket™ tuned sprockets and clutched waterpump pulleys and assemblies; and other specialty products including vehicle start / stop subsystems. Litens has manufacturing operations in North America (Canada), Europe (Germany) and Rest of World (China, Brazil and India).

ROOF SYSTEMS

We design, engineer and manufacture vehicle roof systems for the global automotive industry.

	Retractable Hard Tops		Soft Tops		Sliding Folding & Modular Roofs
	•	Multi-Piece Modules	•	Classic Soft Tops	•	Roof Openings with Fixed C pillars
	•	Integration Services	•	Manual and Fully Automatic Soft Tops	•	Various Fabric Solutions
	•	Design Services			•	Flash to the Roof Panels
					•	Rail-to-Rail Concepts
					•	Roof Openings Spanning the Entire
						Vehicle Width
					•	Roof Openings with Intermediate Positions

Processes employed in our roof systems operations include: “cut and sew” of complete fabric covers; backlight gluing; as well as manual and automated complete roof assembly.

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VEHICLE ENGINEERING AND CONTRACT ASSEMBLY

We provide components, systems and vehicle engineering and contract vehicle assembly services for the automotive industry. We are the world’s largest brand-independent assembler of complete vehicles, and an experienced engineering and manufacturing partner.

	Engineering Services		Contract Manufacturing		Fuel Systems
	•	Design & Vehicle Concepts	•	Vehicle Contract Manufacturing	•	Fuel Tanks (Steel, Plastic & Aluminum)
	•	Complete Vehicle Development & Integration	•	Door Modules	•	Tank Filler Pipers & Filler Braces
			•	Industrial Services	•	Tank Caps
	•	Systems & Modules Development	•	Fibre Composite Technology	•	Diesel Misfueling Protection
	•	Safety Engineering & Testing		Applications	•	Fuel Supply Modules / Valves
	•	Prototype and Low-Volume Production			•	Oil & Cooling-Water Systems Components
	•	Test Bed Services	Battery Systems
	•	Hybrid & Electric Vehicles			•	Alternative Fuel Systems
			•	Battery Pack Development & Production	•	Compressed Air Tanks
			•	Cell, Module & Battery Pack Testing	•	Plastic Tanks
			•	Materials Analysis

Processes employed in our vehicle engineering and contract assembly operations include: manual and automated welding; bonding and riveting; manual and automated painting/coating (dipped and sprayed) and sealing; cycler testing; as well as manual and automated assembly.

TOOLING, ENGINEERING & OTHER

We design, engineer and manufacture tooling for our own use, as well as for sale to our customers. Additionally, we provide engineering support services, independent of particular production programs on which we may have production sales.

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RESEARCH AND DEVELOPMENT

We have historically emphasized technology development and have a policy, embodied in our Corporate Constitution, to allocate a minimum of 7% of our Pre-Tax Profits (as defined in the Corporate Constitution) for each fiscal year to research and development during that fiscal year or the next succeeding fiscal year. We have historically significantly exceeded this 7% threshold. See “ITEM 8. CORPORATE CONSTITUTION – Research and Development”.

We expect that our involvement in the development of innovative product and process technologies in cooperation with automobile manufacturers will increase as automobile manufacturers further involve automotive suppliers in the vehicle development process.

Innovations

Our current strategic focus on innovation is aimed at six areas of emphasis, namely: green technologies, fuel efficient products, lightweight products, products with enhanced safety features, products that increase comfort and manufacturing process efficiency. Our past development activities have resulted in a number of new and improved manufacturing processes and proprietary products, including the following:

Active Grille Shutter System

A shutter/louver system that blocks front-end airflow openings at the vehicle fascia, grille or cooling module under certain conditions. The system’s louvers, functioning like household blinds, automatically open and close based on various inputs from the vehicle. In the closed position, airflow is directed around the vehicle, reducing vehicle drag. In the open position, air flows into the engine compartment to allow for engine cooling.

Intellifold™ Seat Structure

A rear seat structure that, when kneeled, allows the recline pivot and cushion structure to move rearward and downward. This structure enables lower load floors and improves appearance by reducing the height of the head restraint and increasing seat back height. It also enables the third row seat to be folded with the second row seat in multiple positions.

Twin-Sheet Thermoforming Process

A forming process for manufacturing complex fuel systems that uses multilayer flat sheet material and fittings integrated into the deep draw process to achieve a more compact structure. In addition, the process creates only three openings which reduces the opportunity for emissions.

eLatch

A side door latch in which all features and functions are controlled electrically. The eLatch eliminates the use of certain hardware from conventional door systems which serves to reduce cost and weight.

EYERIS™ Vision System

A vision system which incorporates a windshield-mounted video camera and an advanced image processor to provide six driver assistance features, namely: traffic sign recognition, lane departure warning, following distance indication, forward collision alert, high-beam assist and intelligent light ranging.

In addition to these recent innovations, our Infinity™ Rearview Mirror, a mirror that replaces the traditional bezel around an interior mirror’s perimeter with a highly polished, precision-ground glass edge, was selected as a winner of a prestigious 2012 Automotive News PACE Award, which honours superior innovation, technological advancement and business performance among automotive suppliers. Our One-Touch Stow n’ Go^®1 seat mechanism was also a PACE Award finalist.

¹  One-Touch Stow n’ Go^® is a trademark of Chrysler Group LLC.

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MANUFACTURING AND ENGINEERING

Facilities

As at December 31, 2012, we had the following manufacturing and product development, engineering and sales facilities:

GEOGRAPHIC REGION	MANUFACTURING		PRODUCT DEVELOPMENT, ENGINEERING AND SALES
North America		133		27
Europe		122		39
Rest of World		58		22
Total		313		88

Our manufacturing facilities occupied approximately 59.4 million square feet, of which approximately 41% was leased from Granite Real Estate Investment Trust (“Granite REIT”), a Canadian-based, publicly-traded real estate investment trust. A further 30% was leased from other third parties and the remaining 29% was owned by us. Most of our manufacturing facilities maintain an in-house tooling capability with a staff of experienced tool and die makers. We are operating many of our manufacturing facilities on a multi-shift basis.

Our product development and engineering facilities occupied approximately 2.7 million square feet, of which approximately 84% was leased from third parties (including 39% leased from Granite REIT) and the remaining 16% was owned by us.

Leases typically have terms of five years or more with options to renew. Among other terms, any standard industrial leases require us to return the leased facilities to the condition we received them at start of the lease (reasonable wear and tear excepted). From time to time, the cost of doing so may be significant due to such factors as the length of the lease period, the nature of the manufacturing operations, the extent of modifications made to the lease premises over the term of the lease and other factors.

Key Commodities

We purchase the majority of our commodities from regional suppliers where we do business. Factors such as price, quality, transportation costs, warehousing costs, availability of supply, and timeliness of delivery have an impact on the decision to source from certain suppliers. We also purchase some key commodities offshore when shortages occur or when we choose to source one supplier for a global program. Prices for certain key commodities used in our parts production, particularly steel and resin, continue to be volatile. Approximately two-thirds of our steel is acquired through resale programs operated by automobile manufacturers and the balance is generally acquired through annual or six month contracts. Under steel resale programs we are not exposed to steel price increases, thus helping to manage our production costs. Most of our resin purchases fluctuate directly with market indexes, although we do participate in some customer resale programs and also enter into financial hedges on a small portion of our resin purchases. To date, we have not experienced any significant difficulty in obtaining supplies of parts, components or key commodities for our manufacturing operations. We do not carry inventories of key commodities or finished products significantly in excess of those reasonably required to meet production and shipping schedules.

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HUMAN RESOURCES

As at December 31, 2012, we employed approximately 119,000 people as follows:

REGION	NUMBER OF EMPLOYEES
North America		58,875
Europe		44,325
Rest of World		15,775
Total		118,975

Human Resource Principles

Employee Equity Participation and Profit Sharing Program

Since 1975, we have maintained an employee equity and profit participation program to foster participation in profits and share ownership by our eligible employees. Our Corporate Constitution requires that 10% of our qualifying Employee Pre-Tax Profits Before Profit Sharing (as defined in our Corporate Constitution) for a fiscal period be allocated to (i) the employee equity participation and profit sharing plan, (ii) contributions to a defined benefit pension plan, or (iii) a cash distribution to eligible employees. See “ITEM 8. CORPORATE CONSTITUTION – Employee Equity Participation and Profit Sharing Programs”.

Management Incentive Compensation

We believe that the managers who are best able to generate strong operating and financial performance are those who run their business units as if they owned them. In order to create such an entrepreneurial culture within the framework of a large, global, public company, we maintain a decentralized operating structure which gives significant operational autonomy to managers at each of the three primary levels of management – Divisional, Group and Executive. Additionally, we employ the following basic compensation principles for management:

• relatively low fixed compensation, consisting of base salaries which are typically below industry norms. Unlike most peer companies, we do not provide pensions or other retirement benefits for management; and

• annual bonuses that are based on direct profit sharing, which are “at risk” since they are tied directly to Magna’s profits. In the case of executives, a significant portion of the annual bonus is deferred in the form of restricted stock units, the value of which fluctuates with our stock price.

Our compensation system also incorporates a number of other important elements, including significant securities maintenance requirements for senior management, as well as various compensation risk management tools to promote responsible decision-making.

Our Corporate Constitution provides that aggregate profit-sharing bonuses paid and payable to Corporate Management (as defined in the Corporate Constitution) in respect of any fiscal year must not exceed 6% of our Pre-tax Profits Before Profit Sharing (as defined in the Corporate Constitution) for that fiscal year. See “ITEM 8. CORPORATE CONSTITUTION – Incentive Bonuses; Management Base Salaries”. For a detailed discussion of our executive compensation, see “CGCNC Compensation Report to Shareholders” and “Compensation Discussion & Analysis” in our Management Information Circular/Proxy Statement dated March 28, 2013.

Employee’s Charter

We are committed to an operating philosophy based on fairness and concern for people. This philosophy is part of our “Fair Enterprise” culture in which employees and management share in the responsibility to help ensure our success. Our Employee’s Charter embodies this philosophy through the following principles:

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• Job Security – Being competitive by making a better product for a better price is the best way to enhance job security. We are committed to working together with our employees to help protect their job security. To assist in this regard, we provide job counselling, training and employee assistance programs to our employees.

• A Safe and Healthful Workplace – We strive to provide our employees with a working environment which is safe and healthful.

• Fair Treatment – We offer equal opportunities based on an individual’s qualifications and performance, free from discrimination or favouritism.

• Competitive Wages and Benefits – We provide our employees with information which enables them to compare their total compensation, including total wages and total benefits, with those earned by employees of our competitors, as well as with other plants in the communities in which our plants are located. If total compensation is not competitive, wages are adjusted.

• Employee Equity and Profit Participation – We believe that our employees should share in our financial success.

• Communication and Information – Through regular monthly meetings between management and employees and through publications, we provide our employees with information so that they know what is going on in the company and in the industry.

• Employee Hotline – Should any of our employees have a problem, or feel the foregoing principles are not being met, we encourage them to contact the Hotline to register their complaints. Employees do not have to give their names, but if they do, it is held in strict confidence. The Hotline is committed to investigating and resolving all concerns or complaints and must report the outcome to our Global Human Resources Department.

• Employee Relations Advisory Board – The Employee Relations Advisory Board is a group of people who have proven recognition and credibility relating to humanitarian and social issues. This Board monitors, advises and ensures that we operate within the spirit of our Employee’s Charter and the principles of our Corporate Constitution.

Human Resource Policies

In furtherance of our commitment to fairness, as demonstrated in our Employee’s Charter, we have established Fairness Committees in most of our North American and in many European manufacturing facilities which enable employees at such facilities to have many of their concerns resolved by a committee comprised of both management and employees. Most of our North American manufacturing facilities also have an Employee Advocate who works with our employees and management to ensure that any concerns that arise in the workplace are addressed quickly and in accordance with our Employee’s Charter, Corporate Constitution and operating principles. An Employee Advocate can only be removed if more than 65% of the shop floor employees at the applicable Division vote to remove him or her through a secret ballot vote.

We have established many employee communication programs, such as monthly divisional employee meetings, continuous improvement team meetings, an employee hotline and employee opinion surveys to help ensure employee involvement and feedback.

In addition to the employee equity participation and profit sharing programs discussed under “Human Resource Principles”, we maintain a group registered retirement savings plan in Canada and a 401(k) plan in the United States whereby we partially match employees’ contributions made through payroll deductions. These plans complement the employee equity participation and profit sharing programs and are designed to assist employees in providing replacement income for retirement.

Labour Relations

We believe that we maintain positive relations with our employees and, where applicable, with the unions representing the employees at certain of our automotive Divisions.

Employees at one of our facilities in Canada are covered by a collective agreement with the Canadian Auto Workers union (CAW) which does not fall under the Framework of Fairness Agreement described below. Employees at six of our Divisions in the United States are represented by the International Union, United Automobile Aerospace and Agricultural Workers of

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America (UAW) and employees of one of our Divisions in the United States are represented by the United Food & Commercial Workers Union (UFCW). The forms of collective agreements negotiated with the CAW and the UAW recognize our unique operating philosophy, including our Employee’s Charter and fundamental Fair Enterprise principles. Most of these agreements recognize the need for wages and benefits to be competitive with companies we compete with for business, rather than those paid by our customers’ vehicle assembly operations. Moreover, in accordance with applicable labour relations legislation, strikes and lock-outs are prohibited during the life of such agreements.

Employees at a number of our Divisions in Mexico and the United Kingdom are currently covered by collective bargaining agreements with various unions in these jurisdictions. Employees at a number of our Divisions in continental Europe are covered by national industry-wide agreements relating to compensation and employment conditions and are members of in-house employees’ associations or trade unions. From time to time, various unions seek to represent groups of our employees and, as a result, we may become party to additional collective agreements in the future.

Framework of Fairness Agreement

On October 15, 2007, we announced that we had entered into the Framework of Fairness Agreement (“FFA”) with the CAW. The FFA is a set of principles which balance the needs of employees and the needs of business to be competitive. The FFA is being introduced to our employees over a period of several years and they will have the opportunity to vote at the plant level on whether to approve a new contract under its terms and conditions and join the CAW. If a majority of workers in a facility vote in favour, then that plant will be covered by a new Magna-CAW national collective agreement.

The key terms and conditions of the FFA include:

• preservation of our Fair Enterprise culture and operating principles, including the sharing of our financial success through equity ownership, as set out in our Corporate Constitution and Employee’s Charter;

• comprehensive no strike, no lock-out provisions with unresolved collective bargaining issues being settled through final offer selection arbitration;

• progressive concern resolution and plant representation mechanisms that preserve our Open Door Process, Fairness Committees, Employee Advocates and the Employee Hotline;

• competitive wage and benefit principles consistent with our Employee’s Charter;

• tying of annual wage adjustments to a manufacturing inflationary index, plant specific performance measures and competitive considerations;

• secret ballot voting on workplace issues; and

• generally, depoliticization of the workplace and labour-management relations.

As of March 26, 2013, employees at three of our Canadian Divisions are covered by the Magna-CAW national collective agreement under the FFA.

COMPETITION

We face numerous sources of competition in the markets in which we operate, including from automobile manufacturers and from other automotive suppliers, including ones in which one or more automobile manufacturers may have direct or indirect investments. We believe that there are a number of automotive suppliers that can produce some of the components, assemblies, modules and systems that we currently produce. Some of our competitors may have greater technical or marketing resources than we do and some of them may be dominant in markets in which we operate, however, we are the only automotive supplier with product capabilities spanning every major area of a vehicle. We believe that the breadth of our capabilities, combined with our strong balance sheet, corporate culture, customer relationships and other factors provide us with an important competitive advantage. In addition, we have in recent years won business, and continue to pursue opportunities, where appropriate, in areas that are complementary to our existing automotive business. As a result, we also compete against a diverse number of competitors possessing varying degrees of financial and operational strength and experience in their traditional industries.

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The basis on which automobile manufacturers select automotive suppliers is determined by a number of factors, including price, quality, service, historical performance, timeliness of delivery, proprietary technologies, scope of in-house capabilities, existing agreements, responsiveness to the customer, the supplier’s overall relationship with the automobile manufacturer, the degree of available and unutilized capacity or resources in the manufacturing facilities of the automobile manufacturer, collective bargaining agreement provisions, labour relations issues, financial strength and other factors. The number of competitors that are solicited by automobile manufacturers to bid on any individual product has been reduced in many cases and we expect further reductions as a result of economic conditions in recent years and as automobile manufacturers follow through on their stated intentions of dealing with fewer suppliers and rewarding those suppliers with earlier and deeper involvement.

SALES AND MARKETING

Customer Management Offices

We have a globally-structured sales, engineering and marketing team in key locations where our global customers maintain their engineering and commercial offices and satellite locations across the globe where our customers have located their manufacturing facilities. In the Americas, our customer management offices are located in Canada, the United States, Mexico and Brazil. In Europe, our customer management offices are located primarily in Austria, Germany, the United Kingdom, France, Italy, Sweden, Poland, Czech Republic, Hungary, Turkey and Russia. Our customer management offices in Rest of World are located in Japan, China, South Korea, India and Thailand. The various internal operating divisions and subsidiaries of the automobile manufacturers normally initiate many of their own purchasing decisions. As a result, an automobile manufacturer may effectively constitute multiple customers.

Purchase Orders

Our sales are generated through customer requests to quote on particular products, including parts, components and assemblies, and the tools and dies to produce parts. Purchase orders for our products are typically for one or more models, and typically extend over the life of each model, which is generally four to seven years. However, purchase orders issued by our automobile manufacturer customers typically do not require them to purchase any minimum number of our products. Releases under such purchase orders, which authorize us to supply specific quantities of products, are issued for planning, raw material and production purposes typically over a one to four month period in advance of anticipated delivery dates. The actual number of products that we supply under purchase orders in any given year is dependent upon the number of vehicles produced by the automobile manufacturers of the specific models in which those products are incorporated.

It has been our experience that once we receive purchase orders for products for a particular vehicle model or program, we will usually continue to supply those products until the end of that model or program. However, automobile manufacturers could cease sourcing their production requirements from us for a number of reasons, including if we refuse to accept demands for price reductions or other concessions.

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ENVIRONMENTAL MATTERS

Health, Safety and Environmental Policy

We are subject to a wide range of environmental laws and regulations relating to air emissions, soil and ground water quality, wastewater discharge, waste management and storage of hazardous substances. We aim to be an industry leader in environmental compliance with the intention to prevent pollution by reducing the impact of our operations on the environment and through technological innovation and process efficiencies. In furtherance of this aim, our Health, Safety and Environmental Policy commits us to:

• complying with, and exceeding where reasonably possible, all applicable health, safety and environmental laws, regulations and standards in all of our operations and conforming to our internal standards based on generally accepted environmental practices and established industry codes of practice;

• regularly evaluating and monitoring past and present business activities impacting upon health, safety and environmental matters;

• improving upon the efficient use of natural resources, including energy, minimizing waste streams and emissions, and implementing effective recycling in manufacturing operations, in each case, through the use of locally set continuous improvement targets;

• utilizing innovative design and engineering to reduce the environmental impact of our products during vehicle operation and at end of life;

• ensuring that a systematic review program is implemented and monitored at all times for each of our operations, with the goal of continual improvement in health, safety and environmental matters; and

• ensuring that adequate reports on health, safety and environmental matters are presented to our Board of Directors on an annual basis, at a minimum.

The Enterprise Risk Oversight Committee of our Board of Directors assists in overseeing our handling of health, safety and environmental issues and annually reviews our Health, Safety and Environmental Policy. This Committee operates pursuant to a written charter, the text of which is located on our website (www.magna.com) under “Corporate Governance”, along with the text of our Health, Safety and Environmental Policy.

Environmental Compliance

Certifications

As part of our commitment to environmental compliance, we are also compliant with ISO 14001 standards where appropriate. As of December 31, 2012, 219 (or approximately 70%) of our manufacturing facilities were ISO 14001 certified.

Industrial Emissions

We operate a number of manufacturing facilities that use environmentally sensitive processes and hazardous materials. Our manufacturing facilities are subject to a program of regular third party and internal environmental compliance audits or inspections. We believe that all of these operations meet, in all material respects, applicable governmental standards for waste handling and emissions. Notwithstanding this compliance, we have in the past and may in the future experience complaints regarding some of our manufacturing facilities from neighbouring parties. In the past, such complaints have been addressed by open dialogue with relevant stakeholders and, where appropriate, manufacturing process adjustments. In addition, facilities have in the past and may in the future receive a notice of violation or similar communication from local regulators during routine reviews. We have in the past and will continue in the future to address any such notices promptly. Further, in spite of generating and disposing of hazardous wastes in full compliance with the regulations, a waste generator (manufacturing facility) can be named as a Potentially Responsible Party (“PRP”) if a U.S.-based waste handling or disposal facility used by the manufacturing facility goes bankrupt, or is otherwise unable to clean up any contamination associated with its operation. Costs associated with being a PRP could be material depending upon the site conditions and the

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number of participating PRPs. In order to mitigate this risk, we require each of our facilities to ensure that any waste haulers or disposal facilities that they use carry pollution liability insurance in addition to being appropriately licensed.

We are also subject to environmental laws requiring investigation and clean-up of environmental contamination. From time to time, our operations and properties become the subject of inquiries or investigations of environmental regulators. We are in various stages of investigation or clean-up at our manufacturing facilities where contamination has been alleged or identified. These stages include performing periodic soil and groundwater sampling, determining the most appropriate corrective action approach for remediating the contamination and obtaining regulatory approval of such approach, performing the remediation and monitoring the status of our remediation. Estimating environmental clean-up liabilities is complex and heavily dependent on the nature and extent of historical information and physical data about the contaminated site, the complexity of the contamination, the uncertainty of which remedy to apply and the outcome of discussions with regulatory authorities relating to the contamination. To date, the aggregate costs incurred in complying with environmental laws and regulations, including the costs of clean-up and remediation, have not had a material adverse effect on us. However, changes in these government laws and regulations are ongoing and may make environmental compliance, such as emissions control and waste disposal, increasingly expensive. In 2012, we spent approximately $1 million on environmental clean-up and remediation costs and currently estimate slightly higher expenditures for 2013.

We are subject to environmental laws and regulations both as tenant and owner of our properties. Approximately 41% of our automotive real estate is leased from Granite REIT. Our leases with Granite REIT generally provide that, as tenant, we must maintain the leased properties in accordance with all applicable laws, including environmental laws. We are also responsible for removing all hazardous and toxic substances when and as required by applicable laws and, in any event, prior to the termination of our occupation of the leased properties. This applies whether or not the contamination occurred prior to our use of the leased properties, unless it was not caused or exacerbated by our use. Our leases with Granite REIT generally also contain indemnities in favour of the landlord with respect to environmental matters and those indemnities expire after a specified period of time following the termination of the leases.

Greenhouse Gas Emissions

Regulations for greenhouse gas emissions from manufacturing operations are in place or proposed for a number of jurisdictions. They include phased-in mandatory reporting and, in some jurisdictions, reduction targets. Although our operations in various jurisdictions have to meet any applicable regulatory targets for greenhouse gas reduction, our operations are not major emitters and generally do not exceed local reporting thresholds. Accordingly, we do not currently anticipate that current or future regulatory targets for such reduction or future greenhouse gas emission caps would have a material adverse effect on our operations. Magna currently participates in the Carbon Disclosure Project, a not-for-profit project designed to provide investors with information relating to corporate greenhouse gas emissions and perceived corporate risk due to climate change.

LEGAL COMPLIANCE

We strive to be an ethical and responsible corporate citizen. We maintain a Code of Conduct and Ethics (the “Code”) which applies equally to all of our Directors, officers and employees. The Code articulates our compliance-oriented values and our expectations generally. It also establishes our standards of conduct in a number of specific areas, including:

• employment practices and employee rights;

• compliance with law, generally;

• conducting business with integrity, fairness and respect;

• fair dealing, including prohibition on giving or receiving bribes;

• accurate financial reporting;

• standards of conduct for senior financial officers;

• prohibition on insider trading and derivative monetization transactions;

• timely public disclosure of material information;

• compliance with antitrust and competition laws;

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• environmental responsibility;

• occupational health and safety;

• management of conflicts of interest;

• protection of employees’ personal information;

• protection by employees of confidential information; and

• compliance with our corporate policies.

The Code, which is disclosed on the corporate governance section of our website (www.magna.com) and posted on our employee intranet in 12 different languages, is administered by our Audit Committee. The Audit Committee reviews the Code at least annually and recommends to our Board of Directors any revisions that may be advisable from time to time.

In order to help Directors, officers and other employees understand the values, standards and principles underlying the Code, we have implemented a comprehensive compliance program which includes a mix of live training sessions and online training modules. Live training sessions are typically conducted by external and/or in-house lawyers. Online training was rolled-out in 2012, with the initial phase covering 11,000 employees, including members of Executive Management and other senior corporate and operating Group finance, sales & marketing, purchasing, legal, human resources and other personnel. Once fully implemented, we anticipate that every employee with direct access to a workplace computer terminal will complete the online training program, while other employees will receive in-person group training. Among other things, each employee participating in the online training is required to read and acknowledge their understanding of the Code.

We also maintain a confidential and anonymous whistle-blower procedure known as the Good Business Line (“GBL”) for employees and other stakeholders such as customers and suppliers. Stakeholders may make submissions to the GBL by phone, fax, mail, e-mail or internet. All submissions are investigated by our Internal Audit Department, the head of which reports directly to the Chair of our Audit Committee. Summary reports of GBL activity in the fiscal quarter are presented to the Audit Committee at each of its regular quarterly meetings and details are discussed without members of Management present.

INTELLECTUAL PROPERTY

We own and use numerous patents and patent applications in connection with our operations. We are also licensed to use patents or technology owned by others. From time to time, claims of patent infringement are made by or against us. None of the claims against us has had, and we believe that none of the current claims will have, a material adverse effect upon us. While in the aggregate our patents and licenses are considered important in the operation of our business, we do not consider them of such importance that the expiry of any one patent or license would materially affect our business.

Magna International Inc. - AIF 27

RISK FACTORS

The industry in which we compete and the business we conduct are subject to a number of risks and uncertainties. These risks and uncertainties, together with a number of assumptions underlie the forward-looking statements made in this Annual Information Form. In order to fully understand these risks, uncertainties and assumptions, you should carefully consider the following risk factors in addition to other information included in this Annual Information Form.

A worsening of economic and political conditions may result in lower consumer confidence. Lower consumer confidence could result in a decline in production volumes as a result of lower consumer demand which could have a material adverse effect on our profitability.

The global automotive industry is cyclical. A worsening of economic and political conditions, including through rising interest rates or inflation, high unemployment, increasing energy prices, declining real estate values, increased volatility in global capital markets, international conflicts, sovereign debt concerns, the potential for a “currency war”, an increase in protectionist measures and/or other factors, may result in lower consumer confidence, which has a significant impact on consumer demand for vehicles. Vehicle production is closely related to consumer demand. A significant decline in production volumes from current levels could have a material adverse effect on our profitability.

Our profitability could be materially adversely affected by costs associated with downsizing, closing or selling some of our European operations or other significant, non-recurring costs incurred in response to prevailing conditions in the European automotive industry.

The European automotive industry continues to experience significant overcapacity, elevated levels of vehicle inventory, reduced consumer demand for vehicles and depressed production volumes and sales levels. In response to these conditions, some automobile manufacturers have announced plans to restructure their European operations, including through plant closures, while other automobile manufacturers may take similar actions. In light of the prevailing conditions in Europe, in addition to planned actions, we may take additional restructuring or downsizing actions. In such an event, we may incur restructuring, downsizing and/or other significant non-recurring costs in our European operations, which could have a material adverse effect on our profitability.

Our sales and profitability could be materially adversely affected by a deterioration in sales to one or more of our three largest German-based automotive customers.

A majority of our European sales are to three German-based automobile manufacturers - BMW, Volkswagen and Daimler. In recent quarters, these three customers have outperformed the Western European automotive market despite the recession in Europe, due in part to strong demand for their vehicles in Asia and North America. A deterioration of the sales of one or more of our three largest German-based automotive customers could have a material adverse effect on our sales and profitability.

We may not be able to grow our business with Asian-based automotive customers, or grow our business enough with such customers to offset slower growth with our largest customers, which could materially adversely affect our profitability.

In light of the amount of business we currently have with our largest customers in certain regions, our opportunities for incremental growth with these customers may be limited. The amount of business we have with Asian-based OEMs, including Toyota, Honda, Nissan and Hyundai/Kia, generally lags that of our largest customers, due in part to the existing relationships between such Asian-based OEMs and their preferred suppliers. There is no certainty that we can achieve growth with Asian-based OEMs, nor that any such growth will offset slower growth we may experience with our largest customers. Our inability to sustain or grow our business with OEMs could have a material adverse effect on our profitability.

Our inability to turn around financially underperforming operations could have a material adverse effect on our profitability and operations.

Although we are working to turn around financially underperforming operating Divisions, there is no guarantee that we will be successful in doing so in the short- to medium- term. The continued underperformance of one or more operating Divisions could have a material adverse effect on our profitability and operations.

Magna International Inc. - AIF 28

Our short-term profitability could be materially adversely affected by costs associated with downsizing, closing or selling some of our operations or other significant, non-recurring costs.

It is likely that we may downsize, close or sell some of our operating Divisions. By taking such actions, we may incur restructuring, downsizing and/or other significant non-recurring costs. These costs may be higher in some countries than others and could have a material adverse effect on our short-term profitability.

Our profitability may be adversely affected by program launch difficulties.

The launch of new production programs is a complex process, the success of which depends on a wide range of factors, including the production readiness of our and our suppliers’ manufacturing facilities and manufacturing processes, as well as factors related to tooling, equipment, employees, initial product quality and other factors. Our failure to successfully launch material new or takeover business could have an adverse effect on our profitability.

An unanticipated deterioration of economic conditions could result in depletion of our cash resources, which could have a material adverse effect on our operations and financial condition.

We believe we will have sufficient available cash to successfully execute our business plan, even in the event of another global recession similar to that of 2008-2009. However, uncertain economic conditions create significant planning risks for us. The occurrence of an economic shock not contemplated in our business plan, a rapid deterioration of economic conditions or a more prolonged recession than that experienced in 2008-2009 could result in the depletion of our cash resources, which could have a material adverse effect on our operations and financial condition.

The bankruptcy of any of our major customers or suppliers could have a material adverse effect on our profitability.

While the North American automotive industry appears to have stabilized following the 2008-2009 recession, there is no certainty regarding the long-term financial health of our customers and suppliers. The bankruptcy or insolvency of a major customer or supplier to us could have a material adverse effect on our profitability.

Prolonged supply disruptions could have a material adverse effect on our profitability.

A disruption in the supply of components to us from our suppliers could cause the temporary shut-down of our or our customers’ production lines. Any prolonged supply disruption, including due to the inability to re-source or in-source production, could have a material adverse effect on our profitability.

Work stoppages and other labour relations disputes could have a material adverse effect on our operations and profitability.

Some of our manufacturing facilities are unionized, as are many manufacturing facilities of our customers and suppliers. Unionized facilities are subject to the risk of labour disruptions from time to time. A significant labour disruption could lead to a lengthy shutdown of our or our customers’ and/or our suppliers’ production lines, which could have a material adverse effect on our operations and profitability.

Scheduled production shutdowns of our customers’ production facilities could cause our sales and profitability to fluctuate within a fiscal year.

Our businesses are generally not seasonal. However, our sales and profits are closely related to our automotive customers’ vehicle production schedules. Our largest North American customers typically halt production for approximately two weeks in July and one week in December. In addition, many of our customers in Europe typically shutdown vehicle production during portions of August and one week in December. These scheduled shutdowns of our customers’ production facilities could cause our sales and profitability to fluctuate when comparing fiscal quarters in any given year.

Magna International Inc. - AIF 29

We may not be able to compete as successfully as some of our competitors in certain product or geographic areas, which could have an adverse effect on our operations and profitability.

The automotive supply industry is highly competitive. As a result of our diversified automotive business, some competitors in each of our product capabilities have greater market share than we do. Failure to successfully compete with existing or new competitors could have an adverse effect on our operations and profitability.

A reduction in outsourcing by our customers, or the loss of any material production or assembly programs, combined with a failure to secure sufficient alternative programs, could have a material adverse effect on our profitability.

We depend on the outsourcing of components, modules and assemblies, as well as complete vehicles, by automobile manufacturers. The extent of automobile manufacturer outsourcing is influenced by a number of factors, including: relative cost, quality and timeliness of production by suppliers as compared to automobile manufacturers; capacity utilization; automobile manufacturers’ perceptions regarding the strategic importance of certain components/modules to them; labour relations among automobile manufacturers, their employees and unions; and other considerations. A reduction in outsourcing by automobile manufacturers, or the loss of any material production or assembly programs combined with the failure to secure alternative programs with sufficient volumes and margins, could have a material adverse effect on our profitability.

Termination or non-renewal of a production purchase order by a customer could have an adverse effect on our profitability.

Contracts from our customers consist of blanket purchase orders which generally provide for the supply of components for a customer’s annual requirements for a particular vehicle, instead of a specific quantity of products. These blanket purchase orders can be terminated by a customer at any time and, if terminated, could result in our incurring various pre-production, engineering and other costs which we may not recover from our customer and which could have an adverse effect on our profitability.

A shift away from technologies in which we are investing could have a material adverse affect on our profitability and financial condition.

We continue to invest in technology and innovation which we believe will be critical to our long-term growth. Our ability to anticipate changes in technology and to successfully develop and introduce new and enhanced products and/or manufacturing processes on a timely basis will be a significant factor in our ability to remain competitive. If there is a shift away from the use of technologies in which we are investing, our costs may not be fully recovered. We may be placed at a competitive disadvantage if other technologies emerge as industry-leading technologies, which could have a material adverse effect on our profitability and financial condition.

The failure of one or more major financial institutions could adversely affect our financial condition.

The failure of any major financial institutions in the future could adversely affect our ability, as well as our customers’ and suppliers’ ability, to access liquidity needed to support our operating activities. Additionally, the failure of a financial institution in which we invest our cash reserves or that is a counterparty in a derivatives transaction (primarily currency and commodities hedges) with us, could increase the risk that our cash reserves and amounts owing to us pursuant to derivative transactions may not be fully recoverable. Any of these risks could have an adverse effect on our financial condition.

We recorded significant impairment charges in recent years and could record additional impairment charges in the future which could have a material adverse effect on our profitability.

We recorded significant impairment charges related to goodwill, long-lived assets and future tax assets in recent years and may continue to do so in the future. The early termination, loss, renegotiation of the terms of, or delay in the implementation of, any significant production contract could be indicators of impairment. In addition, to the extent that forward-looking assumptions regarding: the impact of turnaround plans on underperforming operations; new business opportunities; program price and cost assumptions on current and future business; the timing and success of new program launches; and forecast production volumes; are not met, any resulting impairment loss could have a material adverse effect on our profitability.

Magna International Inc. - AIF 30

Shifts in market share away from our top customers could have a material adverse effect on our profitability.

Although we supply parts to all of the leading automobile manufacturers, a significant majority of our sales are to six such customers. While we have diversified our customer base somewhat in recent years and continue to attempt to further diversify, there is no assurance we will be successful. Shifts in market share away from our top customers could have a material adverse effect on our profitability.

Shifts in market shares among vehicles or vehicle segments or shifts away from vehicles on which we have significant content could have a material adverse effect on our profitability.

While we supply parts for a wide variety of vehicles produced globally, we do not supply parts for all vehicles produced, nor is the number or value of parts evenly distributed among the vehicles for which we do supply parts. Shifts in market shares among vehicles or vehicle segments, particularly shifts away from vehicles on which we have significant content and shifts away from vehicle segments in which our sales may be more heavily concentrated, could have a material adverse effect on our profitability.

We are exposed to a number of risks related to conducting business in foreign countries, the occurrence of which could have an adverse effect on our operations, financial condition and profitability.

While we continue to expand our manufacturing footprint with a view to taking advantage of manufacturing opportunities in markets such as China, India, Russia, South America and other non-traditional markets for us, we cannot guarantee that we will be able to fully realize such opportunities. Additionally, the establishment of manufacturing operations in new markets carries its own risks, including those relating to:

• political and economic instability;

• high inflation and our ability to recover inflation-related cost increases;

• trade, customs and tax risks;

• expropriation risks;

• currency exchange rates;

• currency controls;

• limitations on the repatriation of funds;

• insufficient infrastructure; and

• other risks associated with conducting business internationally.

Expansion of our business in non-traditional markets is an important element of our strategy and, as a result, our exposure to the risks described above may be greater in the future than in the past. The likelihood of such occurrences and their potential effect on us vary from country to country and are unpredictable, however, the occurrence of any such risks could have an adverse effect on our operations, financial condition and profitability.

Significant long-term fluctuations in relative currency values could have an adverse effect on our profitability and financial condition, and could adversely impact our competitiveness in certain regions.

Although our financial results are reported in U.S. dollars, a significant portion of our sales and operating costs are realized in Canadian dollars, euros, British pounds and other currencies. Our profitability is affected by movements of the U.S. dollar against the Canadian dollar, the euro, the British pound and other currencies in which we generate revenues and incur expenses. Significant long-term fluctuations in relative currency values, in particular a significant change in the relative values of the U.S. dollar, Canadian dollar, euro or British pound, could have an adverse effect on our profitability and financial condition and any sustained change in such relative currency values could adversely impact our competitiveness in certain geographic regions.

Magna International Inc. - AIF 31

Our failure to successfully identify, complete and integrate acquisitions could have a material adverse effect on our profitability.

We have completed a number of acquisitions and may continue to do so in the future. In those product areas in which we have identified acquisitions as a key aspect of our business strategy, we may not be able to identify suitable acquisition targets or successfully acquire any suitable targets which we identify. Additionally, we may not be able to successfully integrate or achieve anticipated synergies from those acquisitions which we do complete, which could have a material adverse effect on our profitability.

We may become subject to liabilities or risks if our acquisition due diligence efforts are limited or prove to be insufficient which could materially adversely affect our profitability.

Although we seek to conduct appropriate levels of due diligence of our acquisition targets, these efforts may not always prove to be sufficient in identifying all risks and liabilities related to the acquisition, including as a result of limited access to information, time constraints for conducting due diligence, inability to access target company plants and/or personnel or other limitations on the due diligence process. As a result, we may become subject to liabilities or risks not discovered through our due diligence efforts, which could have a material adverse effect on our profitability.

Our inability to offset commodities price increases could have a material adverse effect on our profitability.

Prices for certain key raw materials and commodities used in our parts, including steel and resin, continue to be volatile. To the extent we are unable to offset commodity price increases:

• by passing commodity price increases to our customers;

• by engineering products with reduced commodity content;

• through hedging strategies; or

• otherwise,

such additional commodity costs could have an adverse effect on our profitability.

Our inability to offset price concessions or additional costs from our customers could have an adverse effect on our profitability.

We face ongoing pricing pressure, as well as pressure to absorb costs related to product design, engineering and tooling, as well as other items previously paid for directly by OEMs. Our inability to fully offset price concessions or costs previously paid for by automobile manufacturers could have an adverse effect on our profitability.

Warranty and recall costs could have a material adverse effect on our profitability and financial condition.

Our customers continue to demand that we bear the cost of the repair and replacement of defective products which are either covered under their warranty or are the subject of a recall by them. Warranty provisions are established based on our best estimate of the amounts necessary to settle existing or probable claims on product defect issues. Recall costs are costs incurred when government regulators and/or our customers decide to recall a product due to a known or suspected performance issue and we are required to participate either voluntarily or involuntarily. Currently, under most customer agreements, we only account for existing or probable warranty claims. Under certain complete vehicle engineering and assembly contracts, we record an estimate of future warranty-related costs based on the terms of the specific customer agreements and the specific customer’s warranty experience. While we possess considerable historical warranty and recall data and experience with respect to the products we currently produce, we have little or no warranty and recall data which allows us to establish accurate estimates of, or provisions for, future warranty or recall costs relating to new products, assembly programs or technologies being brought into production. The obligation to repair or replace such products could have a material adverse effect on our profitability and financial condition.

Magna International Inc. - AIF 32

Natural disasters could disrupt our supply of products to our customers which could have a material adverse effect on our operations and profitability.

Our manufacturing facilities are subject to risks associated with natural disasters, including fires, floods, hurricanes and earthquakes. The occurrence of any of these disasters could cause the total or partial destruction of a manufacturing facility, thus preventing us from supplying products to our customers and disrupting production at their facilities for an indeterminate period of time. The inability to promptly resume the supply of products following a natural disaster at a manufacturing facility could have a material adverse effect on our operations and profitability.

An increase in our pension funding obligations could have an adverse effect on our profitability and financial condition.

Some of our current and former employees in Canada and the United States participate in defined benefit pension plans. Although these plans have been closed to new participants, existing participants in Canada continue to accrue benefits. Our defined benefit pension plans are not fully funded and our pension funding obligations could increase significantly due to a reduction in the funding status caused by a variety of factors, including: weak performance of capital markets; declining interest rates; failure to achieve sufficient investment returns; investment risks inherent in the investment portfolios of the plans; and other factors. A significant increase in our pension funding obligations could have an adverse effect on our profitability and financial condition.

Legal claims and/or regulatory actions against us could have a material adverse effect on our financial position.

From time to time, we may become involved in regulatory proceedings, or become liable for legal, contractual and other claims by various parties, including customers, suppliers, former employees, class action plaintiffs and others. On an ongoing basis, we attempt to assess the likelihood of any adverse judgments or outcomes to these proceedings or claims, although it is difficult to predict final outcomes with any degree of certainty. Except as disclosed from time to time in our consolidated financial statements, we do not believe that any of the proceedings or claims to which we are party will have a material adverse effect on our financial position; however, we cannot provide any assurance to this effect.

A failure to adequately understand the non-automotive businesses in which we pursue opportunities could have an adverse effect on our operations and profitability.

We continue to pursue opportunities in areas that are complementary to our existing automotive design, engineering and manufacturing capabilities in order to more efficiently use our capital assets, technological know-how and manufacturing capacity. Many of these “non-automotive” industries are subject to some of the same types of risks as our automotive business, including: sensitivity to economic conditions, cyclicality and technology risks. We also face a diverse number of competitors possessing varying degrees of financial and operational strength and experience in their industry. Failure to adequately understand the non-automotive businesses in which we pursue opportunities, including with respect to warranty issues, pricing and other factors, could have an adverse effect on our operations and profitability.

Changes in our mix of earnings between jurisdictions with lower tax rates and those with higher tax rates could have a material adverse effect on our profitability.

Our effective tax rate varies in each country in which we conduct business. Changes in our mix of earnings between jurisdictions with lower tax rates and those with higher tax rates could have a material adverse effect on our profitability.

Our profitability may be materially adversely affected by our inability to utilize tax losses or because of tax exposures we face.

We have incurred losses in some countries which we may not be able to fully or partially offset against income we have earned in those countries. In some cases, we may not be able to utilize these losses at all if we cannot generate profits in those countries and/or if we have ceased conducting business in those countries altogether. Our inability to utilize material tax losses could materially adversely affect our profitability. At any given time, we may face other tax exposures arising out of changes in tax laws, tax reassessments or otherwise. To the extent we cannot implement measures to offset these exposures, they may have a material adverse effect on our profitability.

Magna International Inc. - AIF 33

A downgrade in credit ratings assigned to us could impact our cost of borrowing, which could have an adverse effect on our profitability and financial condition.

The credit ratings currently assigned to us by DBRS, Moody’s and Standard & Poor’s, or that may in the future be assigned to us by other ratings agencies, are subject to change in accordance with the criteria established by such ratings agencies. There is no assurance that any rating assigned to us will remain in effect for any given period of time or that any rating will not be revised or withdrawn entirely by a rating agency in the future. A downgrade in the credit ratings assigned to us by one or more rating agencies could increase our cost of borrowing or impact our ability to renegotiate loans made to us, which could have an adverse effect on our profitability and financial condition.

Significant changes in laws and governmental regulations could have an adverse effect on our profitability.

A significant change in the current regulatory environment in our principal markets could have an adverse effect on our profitability. Additionally, we could be adversely affected by changes in tax or other laws which impose additional costs on automobile manufacturers or consumers, or more stringent fuel economy and emissions requirements on manufacturers, of sport-utility vehicles, light trucks and other vehicles from which we derive some of our sales.

Compliance with environmental laws and regulations could have an adverse effect on our financial condition or profitability.

We are subject to a wide range of environmental laws and regulations relating to air emissions, wastewater discharge, waste management and storage of hazardous substances. We are also subject to environmental laws requiring investigation and clean-up of environmental contamination and are in various stages of investigation and clean-up at our manufacturing facilities where contamination has been alleged. Estimating environmental clean-up liabilities is complex and heavily dependent on the nature and extent of historical information and physical data relating to the contaminated sites, the complexity of the contamination, the uncertainty of which remedy to apply and the outcome of discussions with regulatory authorities relating to the contamination. In addition, these environmental laws and regulations are complex, change frequently and have tended to become more stringent and expensive over time. Therefore, we may not have been, and in the future may not be, in complete compliance with all such laws and regulations and we may incur material costs or liabilities as a result of such laws and regulations significantly in excess of amounts we have reserved. To the extent that we incur liabilities or costs in excess of the amounts we have reserved in order to comply with environmental laws and regulations, such liabilities or costs could have an adverse effect on our financial condition or profitability.

We may not achieve returns on investments which equal or exceed past returns which could materially adversely affect our profitability.

In recent years, we have invested significant amounts of money in our business through capital expenditures to support new facilities, expansion of existing facilities, purchases of production equipment and acquisitions. Returns achieved on such investments in the past are not necessarily indicative of the returns we may achieve on future investments and our inability to achieve returns on future investments which equal or exceed returns on past investments could have a material adverse effect on our profitability.

Trading prices of our Common Shares are not predictable and may fluctuate significantly due to a variety of factors, many of which are outside of our control.

Trading prices of our Common Shares cannot be predicted and may fluctuate significantly due to a variety of factors, many of which are outside our control, including: general economic and stock market conditions; variations in our operating results and financial condition; differences between our actual operating and financial results and those expected by investors and stock analysts; changes in recommendations made by stock analysts, whether due to factors relating to us, our customers, the automotive industry or otherwise; significant news or events relating to our primary customers, including the release of vehicle production and sales data; investor and stock analyst perceptions about the prospects for our or our primary customers’ respective businesses or the automotive industry; and other factors.

Magna International Inc. - AIF 34

ITEM 4. DIVIDENDS

Dividends Paid

The following table sets forth the cash dividends we have paid on our Common Shares and, prior to August 31, 2010, our Class B Shares for the last three years, as restated to reflect the Stock Split:

PERIOD	PAYMENT DATE	RECORD DATE	AMOUNT PER SHARE (COMMON)				AMOUNT PER SHARE (CLASS B)
			RESTATED		ACTUAL
Calendar 2013 (to date)	March 27	March 13	$	0.32	$	0.32		—
Calendar 2012	December 14	November 30	$	0.275	$	0.275		—
	September 14	August 31	$	0.275	$	0.275		—
	June 15	May 31	$	0.275	$	0.275		—
	March 23	March 12	$	0.275	$	0.275		—
Calendar 2011	December 15	November 30	$	0.25	$	0.25		—
	September 15	August 31	$	0.25	$	0.25		—
	June 15	May 31	$	0.25	$	0.25		—
	March 23	March 11	$	0.25	$	0.25		—
Calendar 2010	December 15	November 30	$	0.18	$	0.18		—
	September 15	August 31	$	0.15	$	0.30		—
	June 16	May 31	$	0.09	$	0.18	$	0.18

We started paying quarterly cash dividends on our shares in 1967 and continued to do so for 70 fiscal quarters. Our Board suspended the Company’s quarterly dividend on May 5, 2009 during the 2008/2009 global recession but reinstated it on May 5, 2010. We have paid cash dividends in each of the 12 quarters since reinstatement of the dividend, including five increases in the dividend rate. The payment of dividends and the amount thereof is determined by our Board in accordance with our Corporate Constitution (see “ITEM 8. CORPORATE CONSTITUTION – Dividends”), taking into account earnings, cash flow, capital requirements, our financial condition and other relevant factors.

Dividend Reinvestment Plan (DRIP)

Since 1994, we have maintained a dividend reinvestment plan in which registered shareholders have the option to purchase additional Common Shares by investing the cash dividends paid on their shares.

Magna International Inc. - AIF 35

ITEM 5. DESCRIPTION OF CAPITAL STRUCTURE

Authorized Share Capital

Our authorized share capital consists of an unlimited number of Common Shares and 99,760,000 Preference Shares, issuable in series, all with no par value. As of March 26, 2013, a total of 234,174,167 Common Shares were outstanding. No Preference Shares have been issued or are outstanding.

The following is a brief description of the significant attributes of our authorized share capital and is qualified in its entirety by reference to the detailed provisions in our charter documents. See “ITEM 8. – CORPORATE CONSTITUTION” for additional terms and conditions relating to our authorized share capital. The attributes of our Common Shares and our Preference Shares are set out in our charter documents, which include our Corporate Constitution.

Common Shares

The holders of our Common Shares are entitled:

• to one vote for each Common Share held at all meetings of our shareholders, other than meetings of the holders of another class or series of shares;

• to receive any dividends that may be declared by our Board, subject to the preferential rights attaching to any shares ranking in priority to our Common Shares; and

• to receive, after the payment of our liabilities and subject to the rights of the holders of any shares ranking in priority to our Common Shares, all our property and assets available for distribution in the event of our liquidation, dissolution or winding-up, whether voluntary or involuntary, or any other distribution of assets among our shareholders for the purpose of winding-up our affairs.

Preference Shares

Our Board may, without the approval of any of our shareholders, fix the number of shares in and determine the attributes of an individual series of Preference Shares and issue shares of such series from time to time. The shares of each such series will be entitled to a preference over our Common Shares, but will rank equally with the Preference Shares of every other series with respect to the payment of dividends and in the distribution of all our property and assets available for distribution in the event of our liquidation, dissolution or winding-up, whether voluntary or involuntary, or any other distribution of assets among our shareholders for the purpose of winding-up our affairs. No Preference Shares have been issued or are outstanding.

Amendments to Share Provisions and Other Matters

The provisions attaching to our Preference Shares, to a series of our Preference Shares, and to our Common Shares may not be deleted or varied without the approval of the holders of the class or series concerned. In addition, no shares of a class ranking prior to or on a parity with our Preference Shares, or our Common Shares may be created without the approval of the holders of the class or each series of the class concerned. Any approval required to be given must be given by two-thirds of the votes cast by those present or voting at a meeting of the holders of the class or series concerned duly called for that purpose in addition to any other consent or approval required by law.

Magna International Inc. - AIF 36

Ratings

As of the date of this Annual Information Form, we have been assigned the following senior debt credit ratings:

CREDIT RATING AGENCY	RATING	OUTLOOK/TREND
DBRS(1)	A (low)	Stable
Moody’s(2)	Baa2	Stable
Standard & Poor’s(3)	BBB+	Stable

Notes:

(1) Dominion Bond Rating Service’s rating of our senior debt is based on its long-term debt rating scale that ranges from “AAA” to “D”, which represents the range from highest to lowest credit quality of the long-term debt rated. Long-term debt rated in the “A” rating category is in the third highest category of the relevant scale and is considered by DBRS to be of good credit quality, with substantial capacity for payment of financial obligations. “High” and “low” grades are used to indicate the relative standing of credit within a particular rating category. The absence of one of these designations indicates a rating which is in the middle of the category, excluding the AAA and D categories for which the “high”, “middle” or “low” designations are not used. The DBRS rating trends provide guidance in respect of DBRS’ opinion regarding the outlook for the rating in question, with rating trends falling into one of three categories - “Positive”, “Stable” or “Negative”. The rating trend indicates the direction in which DBRS considers the rating is headed should present tendencies continue, or in some cases, unless challenges are addressed. A “Positive” or “Negative” does not necessarily indicate a ratings change is imminent, but rather the trend represents an indication that there is a greater likelihood that the rating could change in the future than would be the case if a “Stable” trend was assigned.

(2) Moody’s Investor Service’s senior unsecured issuer rating is an opinion as to our future relative creditworthiness. The credit rating is based on a rating scale that, for global automotive suppliers, ranges from “Aaa” to “Ca”, which represents the range from those obligations with minimal credit risk to those obligations that are highly speculative and likely in, or very near, default. Issuer’s in the “Baa” rating category are in the fourth highest category of the relevant scale and are considered by Moody’s to be subject to moderate credit risk. The determination of the overall rating assigned to a global automotive supplier is based on an assessment of an issuer’s performance in four broad weighted categories which are further broken down into 13 weighted sub-factors each of which maps to a specific letter rating in the range above. The indicated rating category for each sub-factor (i.e., Aaa, Aa, etc.) is then converted into a numeric value, which is then multiplied by the weight for that sub-factor with the results then totaled to produce a composite weighted-factor score, that is itself then mapped back to an alphanumeric rating based on the ratings range from Aaa to Ca. Moody’s appends the numerical modifiers 1, 2, or 3 to each generic rating classification from Aa through Caa. The modifiers 1, 2 and 3 indicate that the obligation ranks in the higher end, mid-range or lower end of its generic rating category, respectively. The Moody’s rating outlook is an opinion regarding the likely direction of an issuer’s rating over the medium term, and fall into one of four categories: Positive, Negative, Stable or Developing.

(3) Standard & Poor’s issuer credit rating is a current opinion of our overall financial capacity (i.e. credit worthiness) to pay our financial obligations in full and on time. This credit rating is based on a rating scale that ranges from “AAA” to “D”, which represents the range from extremely strong capacity to meet financial obligations to a failure to pay one or more financial obligations when it came due. An issuer with a long-term issuer rating in the “BBB” rating category is in the fourth highest category of the relevant scale and is considered by Standard & Poor’s to have an adequate capacity to meet its financial commitments but that adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the issuer to meet its financial obligations than issuers in higher-rated categories. The ratings from “AA” to “CCC” may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories. The lack of one of these designations indicates a rating that is in the middle of the category. The S&P rating outlook assesses the potential direction of a credit rating over the intermediate term (typically six months to two years), but is not necessarily a precursor to a rating change. A “Stable” outlook rating means the rating is not likely to change.

Credit ratings are intended to provide investors with an independent measure of the credit quality of debt and securities. The credit ratings assigned to us or our senior debt by the rating agencies are not recommendations to purchase, hold or sell our debt or securities, since such ratings do not address market price or suitability for a particular investor. There is no assurance that any rating will remain in effect for any given period of time or that any rating will not be revised or withdrawn entirely by a rating agency in the future.

Magna International Inc. - AIF 37

ITEM 6. MARKET FOR SECURITIES

Our Common Shares are listed and posted for trading on the Toronto Stock Exchange (“TSX”) under the trading symbol “MG”, and on the New York Stock Exchange under the trading symbol “MGA”.

The high and low sale prices and volume of shares traded for our Common Shares, as reported by the TSX, for the months during the year ended December 31, 2012 were as follows:

MONTH	HIGH (CDN.$)		LOW (CDN.$)		VOLUME
January		43.60		34.02		19,634,525
February		48.32		41.52		16,095,942
March		48.99		45.32		20,447,611
April		48.65		43.02		10,713,195
May		45.95		40.85		13,771,311
June		42.86		38.10		18,286,913
July		42.69		37.68		11,093,123
August		45.77		38.69		11,075,095
September		45.99		42.19		12,802,331
October		45.05		42.30		10,283,522
November		46.60		42.73		9,315,676
December		49.88		45.01		11,533,552

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ITEM 7. DIRECTORS AND EXECUTIVE OFFICERS

Directors

Our Board of Directors currently consists of the following members:

NAME AND MUNICIPALITY OF RESIDENCE	DIRECTOR SINCE	PRINCIPAL OCCUPATION
SCOTT B. BONHAM California, U.S.A.	May 10, 2012	Co-Founder, GGV Capital
PETER G. BOWIE Ontario, Canada	May 10, 2012	Corporate Director
HON. J. TREVOR EYTON Ontario, Canada	May 6, 2010	Corporate Director
V. PETER HARDER(1) Ontario, Canada	May 10, 2012	Senior Policy Advisor, Fraser Milner Casgrain LLP
LADY BARBARA JUDGE London, United Kingdom	September 20, 2007	Corporate Director
DR. KURT J. LAUK(2) Baden-Württemburg, Germany	May 4, 2011	President, Globe CP GmbH
DONALD J. WALKER Ontario, Canada	November 7, 2005	Chief Executive Officer of Magna
LAWRENCE D. WORRALL Ontario, Canada	November 7, 2005	Corporate Director
WILLIAM L. YOUNG(3)(4) Massachusetts, U.S.A.	May 4, 2011	Co-Founder and Partner, Monitor Clipper Partners

Notes:

(1) Mr. Harder was a director of Arise Technologies Corporation (“Arise”) until June 24, 2011. Arise was deemed to have made an assignment into bankruptcy on April 11, 2012.

(2) Dr. Lauk was a director of Papierfabrik Scheuffelen GmbH, a private company, when it filed for bankruptcy protection under German law on July 17, 2008.

(3) Chairman of the Board.

(4) Mr. Young was a director of American Fiber & Yarns and Recycled Paper Greetings, both of which were private companies, when they filed voluntary petitions for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code on September 23, 2008 and January 2, 2009, respectively.

All of our directors were elected to their present terms of office by our shareholders at our Annual Meeting of Shareholders held on May 10, 2012. The term of office for each director expires at the conclusion of the next annual meeting of our shareholders. No executive committee of the Board has been constituted.

All of the directors have held the principal occupations identified above (or another position with the same employer) for not less than five years, except as follows:

• Mr. Bowie served as Chief Executive of Deloitte China from 2003 to 2008.

• Mr. Eyton served as a Member of the Senate of Canada from 1990 until his retirement in 2009.

• Lady Judge served as Chairman of the Board of the UK Atomic Energy Authority from 2004 until 2010.

Magna International Inc. - AIF 39

• Dr. Lauk served as a member of the European Parliament from 2004 to 2009.

Lady Judge and Messrs. Bonham, Bowie, Eyton, Harder, Lauk, Worrall and Young have all been determined by our Board to be “independent directors” within the meaning of such term under applicable law.

Our Board currently has three standing Committees, comprised of the following independent directors as of March 28, 2013:

	AUDIT COMMITTEE	CORPORATE GOVERNANCE, COMPENSATION  & NOMINATING COMMITTEE	ENTERPRISE RISK OVERSIGHT  COMMITTEE
Scott B. Bonham	¢		¢
Peter G. Bowie	¢
Hon. J. Trevor Eyton		¢
V. Peter Harder		¢
Lady Barbara Judge			Chair
Kurt J. Lauk	¢
Lawrence D. Worrall	Chair		¢
William L. Young		Chair

Additional information in respect of each person nominated for election at our 2013 Annual Meeting of Shareholders, as well as the basis for the Board’s independence determination, can be found in our Management Information Circular/Proxy Statement dated March 28, 2013.

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Executive Officers

Our executive officers currently consist of the following persons:

NAME AND MUNICIPALITY OF RESIDENCE	PRINCIPAL OCCUPATION
DONALD J. WALKER Ontario, Canada	Chief Executive Officer (since November 2010; previously Co-CEO since April 2005)
VINCENT J. GALIFI Ontario, Canada	Executive Vice-President (since September 1996) and Chief Financial Officer (since December 1997)
JEFFREY O. PALMER Ontario, Canada	Executive Vice-President (since January 2001) and Chief Legal Officer (since January 2008)
GUENTHER APFALTER Upper Austria, Austria	President, Magna Europe (since February 2011) and President, Magna Steyr (since January 2008)
HERBERT H. DEMEL Vienna, Austria	Executive Vice President (since May 2010) and Chief Strategy Officer (since February 2012)
SEETARAMA KOTAGIRI Michigan, U.S.A.	Executive Vice President, Corporate Engineering and R&D (since January 2013) and Executive Vice President of Global Engineering and R&D of Cosma International (since June 2008).
MARC J. NEEB Ontario, Canada	Executive Vice-President, Global Human Resources (since January 2003)
ALON S. OSSIP Ontario, Canada	Executive Vice-President (since October 2006)
JAMES J. TOBIN, Sr. Michigan, U.S.A.	Chief Marketing Officer (since May 2010) and President, Magna Asia (since February 2012)
TOMMY J. SKUDUTIS Ontario, Canada	Chief Operating Officer, Exteriors, Interiors (since May 2007) Seating, Mirrors, Closures (since May 2010) and Cosma (since February 2013)

To the extent that our executive officers have not held the offices identified above for the last five years, they have held the following offices or positions with us and/or have had the following principal occupations, during the last five years:

• Prior to February 2012, Mr. Demel was President, Magna China, India, South East Asia, South America and Africa since May 2010. He previously served as Chief Operating Officer, Vehicles and Powertrain (from May 2007 to May 2010) and as President of Magna Powertrain (from June 2005 to May 2007).

• Prior to February 2012, Mr. Tobin was President, Magna Japan and Korea since May 2010. He previously served as Executive Vice-President, Business Development (from December 2007 to May 2010), prior to which he served as Executive Vice-President, Business Development and Sales of Cosma International since January 2006.

• Prior to January 2013, Mr. Skudutis was also President, Cosma International (from January to December 2012).

Beneficial Ownership of Securities

All our directors and executive officers as a group (18 persons) owned beneficially or exercised control or direction over 1,261,107 Common Shares representing approximately 0.5% of the class, as at March 26, 2013.

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ITEM 8. CORPORATE CONSTITUTION

Our Corporate Constitution forms part of our charter documents. The Corporate Constitution defines the rights of our employees and investors to participate in our profits and growth and imposes discipline on our management. The description which follows does not purport to be complete and is subject to, and is qualified in its entirety by reference to, the detailed provisions of the Corporate Constitution as contained in our charter documents.

Board of Directors

Our Corporate Constitution requires that a majority of the members of our Board be individuals who are not also our officers, employees or persons related to our officers or employees.

Employee Equity Participation and Profit Sharing Programs

Our Corporate Constitution requires that 10% of our qualifying Employee Pre-Tax Profits Before Profit Sharing (as defined in the Corporate Constitution) for each fiscal year be allocated in that fiscal year or the immediately following fiscal year to:

• the employee equity participation and profit sharing programs and any other profit sharing programs we have established for our employees; and

• our defined benefit pension plan (for participating employees).

Senior members of Divisional, Regional and Executive Management who are direct profit participators in Magna’s profits or those of any subsidiary, do not participate in these employee equity participation and profit sharing programs.

Dividends

Our Corporate Constitution provides that unless otherwise approved by ordinary resolution of the holders of our Common Shares, the holders of our Common Shares will be entitled to receive and we will pay, if, as and when declared by our Board out of funds properly applicable to the payment of dividends, non-cumulative dividends in respect of each fiscal year so that the aggregate of the dividends paid or payable in respect of such year is:

• equal to at least 10% of our After-Tax Profits (as defined in the Corporate Constitution) after providing for dividends on preference shares, if any, for such year; and

• on average over a three-year period, equal to at least 20% of our After-Tax Profits (as defined in the Corporate Constitution) after providing for dividends on preference shares, if any.

Changes in Share Capital

Except as otherwise approved by ordinary resolution of the holders of our Common Shares, our Corporate Constitution prohibits:

• an increase in the maximum number of authorized shares of any class of our capital stock (other than our Common Shares which may be issued in an unlimited amount); and

• the creation of any new class or series of capital stock having voting rights (other than on default in the payment of dividends) or having rights to participate in our profits (other than securities convertible into existing classes of shares or a class or series of shares having fixed dividends or dividends determined without regard to profits).

Unrelated Investments

Unless approved by ordinary resolution of the holders of our Common Shares, our Corporate Constitution prohibits us from making an investment (whether direct or indirect, by means of loans, guarantee, or otherwise) in any “unrelated business”

Magna International Inc. - AIF 42

where such an investment, together with the aggregate of all other investments in unrelated businesses on the date in question, exceeds 20% of our “available equity” at the end of the financial quarter immediately preceding the date of investment. For purposes of our Corporate Constitution, the term “unrelated business” means any business that does not:

• relate to the design, manufacture, distribution or sale of motor vehicles or motor vehicle parts, components, assemblies or accessories;

• utilize technology, manufacturing processes, equipment or skilled personnel in a manner similar to that utilized or under development by us; or

• involve the provision of products or services to our suppliers and customers, or the provision of products or services similar to those provided by our suppliers and customers from time to time.

A business will be deemed to cease to be an unrelated business for purposes of our Corporate Constitution if the net profits after tax of such business exceed on average 5% of our aggregate investment in such business for two out of any three consecutive years after the date of such investment. For purposes of our Corporate Constitution, the term “available equity” is defined to mean our total shareholders’ equity, less the stated capital of any non-participating preference shares.

Research and Development

Our Corporate Constitution requires a minimum of 7% of our Pre-Tax Profits (as defined in the Corporate Constitution) for any fiscal year to be allocated to research and development during that fiscal year or the immediately following fiscal year.

Social Objectives

Pursuant to our Corporate Constitution, a maximum of 2% of our Pre-Tax Profits (as defined in the Corporate Constitution) for any fiscal year may be allocated to the promotion of “social objectives” during the fiscal year or the immediately following fiscal year. For purposes of our Corporate Constitution, the term “social objectives” means objectives which, in the sole opinion of our Executive Management, are of a political, patriotic, philanthropic, charitable, educational, scientific, artistic, social or other useful nature to the communities in which we operate.

Profit-Sharing Bonuses; Management Base Salaries

Our Corporate Constitution provides that aggregate profit-sharing bonuses paid or payable to “Corporate Management” in respect of any fiscal year shall not exceed 6% of our Pre-Tax Profits Before Profit Sharing (as defined in the Corporate Constitution) for that fiscal year and that their base salaries shall be comparable to those in industry generally. For purposes of our Corporate Constitution, “Corporate Management” means our chief executive officer, chief operating officer, chief marketing officer and chief administrative officer and any other employee designated by these persons from time to time to be included within “Corporate Management”. For a detailed discussion of our executive compensation, see “CGCNC Compensation Report to Shareholders”, “Compensation Discussion and Analysis”, “Summary Compensation Table” and “Incentive Plan Awards” in our Management Information Circular/Proxy Statement dated March 28, 2013.

ITEM 9. LEGAL PROCEEDINGS

Putative Class Action

A putative class action lawsuit alleging violations of the United States Securities Exchange Act of 1934 has been filed in the United States District Court, Southern District of New York, against the Company, as well as its Chief Executive Officer, Chief Financial Officer and Founder. Boilermaker-Blacksmith National Pension Trust (“BBNPT”) was appointed the lead plaintiff on an uncontested motion, following which it filed an amended complaint. The defendants have filed motion materials seeking dismissal of the lawsuit and the motion record is now complete. The motion to dismiss is expected to be heard by the end of the second quarter of 2013. The defendants believe the lawsuit is without merit and therefore intend to vigorously defend the case. Given the early stages of the legal proceedings, it is not possible to predict the outcome of the claim.

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KS Centoco

In November 1997, Magna and two of its subsidiaries were sued in the Ontario Superior Court of Justice by KS Centoco Ltd., an Ontario-based steering wheel manufacturer in which we have a 23% equity interest, and by Centoco Holdings Limited, the owner of the remaining 77% equity interest in KS Centoco Ltd. In March 1999, the plaintiffs were granted leave to make substantial amendments to the original statement of claim in order to add several new defendants and claim additional remedies and, in February 2006, the plaintiffs further amended their statement of claim to add an additional remedy. The amended statement of claim alleges, among other things:

• breach of fiduciary duty by us and two of our subsidiaries;

• breach by us of our binding letter of intent with KS Centoco, including our covenant not to have any interest, directly or indirectly, in any entity that carries on the airbag business in North America, other than through MST Automotive Inc., a company to be 77% owned by Magna and 23% owned by Centoco Holdings;

• the plaintiff’s exclusive entitlement to certain airbag technologies in North America pursuant to an exclusive license agreement, together with an accounting of all revenues and profits resulting from the alleged use by us, TRW Inc. and other unrelated third party automotive supplier defendants of such technology in North America;

• a conspiracy by us, TRW and others to deprive KS Centoco of the benefits of such airbag technology in North America and to cause Centoco Holdings to sell to TRW its interest in KS Centoco in conjunction with the sale by us to TRW of our interest in MST Automotive GmbH and TEMIC Bayern-Chemie Airbag GmbH; and

• oppression by the defendants.

The plaintiffs are seeking, among other things, damages of approximately Cdn.$3.5 billion. Document production, completion of undertakings and examinations for discovery are substantially complete. The trial is not expected to commence until late 2014, at the earliest. We believe we have valid defenses to the plaintiff’s claims and therefore intend to continue to vigorously defend this case. At this time, notwithstanding the amount of time which has transpired since the claim was filed, these legal proceedings remain at an early stage and, accordingly, it is not possible to predict their outcome.

Conclusion of DoJ Investigation

In January 2013, the investigation by the DoJ into certain practices relating to our tooling sales, with which we had been cooperating since October 2011, concluded without any action being taken by the DoJ.

Other

In the ordinary course of business activities, we may become contingently liable for litigation and claims with customers, suppliers, former employees and other parties. In addition, we may be, or could become, liable to incur environmental remediation costs to bring environmental contamination levels back within acceptable legal limits. On an ongoing basis, we assess the likelihood of any adverse judgments or outcomes to these matters, as well as potential ranges of probable costs and losses.

A determination of the provision required, if any, for these contingencies is made after analysis of each individual issue. The required provision may change in the future due to new developments in each matter or changes in approach, such as a change in settlement strategy in dealing with these matters.

Warranty, Product Liability and Recall Costs

In certain circumstances, we are at risk for warranty costs, including product liability and recall costs. Due to the nature of the costs, we make our best estimate of the expected future costs, however, the ultimate amount of such costs could be materially different. We continue to experience increased customer pressure to assume greater warranty responsibility. Currently, under most customer agreements, we only account for existing or probable claims. Under certain complete vehicle engineering and assembly contracts, we record an estimate of future warranty-related costs based on the terms of the specific customer agreements and the specific customer’s warranty experience.

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ITEM 10. INTERESTS OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS

Reference is made to the sections entitled “Management Contracts” and “Interests of Management and Other Insiders in Certain Transactions” in our Management Information Circular/Proxy Statement dated March 28, 2013 for our Annual Meeting of Shareholders to be held on May 10, 2013, which is incorporated by reference into this Annual Information Form.

ITEM 11. TRANSFER AGENT AND REGISTRAR

The transfer agent and registrar for our Common Shares is Computershare Trust Company of Canada, at its principal offices in Toronto, Ontario. The co-transfer agent and co-registrar for our Common Shares in the United States is Computershare Trust Company, N.A., at its offices in Canton, Massachusetts.

ITEM 12. EXPERTS

Our independent auditor is Ernst & Young LLP, which (together with its predecessor firms) has been our independent auditor since February 27, 1969.

ITEM 13. AUDIT COMMITTEE

Our Audit Committee is comprised of Messrs. Lawrence D. Worrall (Chair), Scott B. Bonham, Peter G. Bowie and Dr. Kurt J. Lauk. A copy of our Audit Committee Charter, as amended November 7, 2012, is available on our website (www.magna.com) under “Corporate Governance” and has been filed on SEDAR (www.sedar.com) and on EDGAR (www.sec.gov/edgar) and is incorporated by reference into this Annual Information Form. Additional information about our Audit Committee is contained in the section entitled “Corporate Governance – Report of the Audit Committee” as well as in the “Statement of Corporate Governance Practices” in our Management Information Circular/Proxy Statement dated March 28, 2013 for our Annual Meeting of Shareholders to be held on May 10, 2013, which is incorporated by reference into this Annual Information Form.

ITEM 14. ADDITIONAL INFORMATION

Our Management Information Circular/Proxy Statement dated March 28, 2013 contains the following additional information:

• our directors’ and named executive officers’ remuneration and indebtedness;

• our voting securities and their principal holders; and

• securities authorized for issuance under our equity-based compensation plans.

Additional financial information about us is provided in our consolidated financial statements as at and for the three-year period ended December 31, 2012. These documents and additional information about us may be found on SEDAR, at www.sedar.com, on EDGAR at www.sec.gov/edgar and on our website, at www.magna.com. Any person may obtain copies of the following documents upon request from our Secretary, c/o Magna International Inc.,

Magna International Inc. - AIF 45

337 Magna Drive, Aurora, Ontario, L4G 7K1:

• at any time when our securities are in the course of a distribution pursuant to a short form prospectus or a preliminary short form prospectus has been filed in respect of a distribution of our securities,

• one copy of this Annual Information Form;

• one copy of our Annual Report to Shareholders for the year ended December 31, 2012, which contains the following items:

• the “Management’s Discussion and Analysis of Results of Operations and Financial Position”, which is the only item incorporated by reference into this Annual Information Form; and

• our consolidated financial statements as at and for the three-year period ended December 31, 2012;

• one copy of any of our interim financial statements subsequent to the financial statements for our most recently completed fiscal year;

• one copy of our Management Information Circular/Proxy Statement dated March 28, 2013; and

• one copy of any other documents that are incorporated by reference into the preliminary short form prospectus or the short form prospectus and are not provided under any of the foregoing; or

• at any other time, one copy of any of the documents referred to immediately above, provided that we may require payment of a reasonable charge for such copy if the request is made by a person who is not one of our security holders.

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EX-2

Exhibit 2

The Annual Report to Shareholders for the Year Ended December 31, 2012, which contains audited financial statements as at and for the three-year period ended December 31, 2012 and Management’s Discussion and Analysis of Results of Operations and Financial Position is hereby incorporated by reference to Exhibit 99.1 to Report on Form 6-K dated March 28, 2013.

EX-3

Exhibit 3

Consent of Independent Registered Public Accounting Firm

We consent to the reference to our Firm under the caption “Experts” and to the use in this Annual Report on Form 40-F of our reports dated March 7, 2013, with respect to the consolidated balance sheets of the Company as at December 31, 2012 and 2011, and the consolidated statements of income, comprehensive income, changes in equity and cash flows for each of the years in the three-year period ended December 31, 2012, and the effectiveness of internal control over financial reporting of Magna International Inc. as at December 31, 2012.

We also consent to the incorporation by reference of our reports dated March 12, 2012 in the Registration Statement (Form S-8 No. 333-128257) pertaining to the Magna Group of Companies Retirement Savings Plan.

	/s/ “Ernst & Young LLP”
Toronto, Canada	Chartered Accountants
March 28, 2013	Licensed Public Accountants

EX-99.1

Exhibit 99.1

CERTIFICATION

I, Donald J. Walker, Chief Executive Officer, certify that:

1. I have reviewed this annual report on Form 40-F of Magna International Inc. (the issuer”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;

4. The issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and

5. The issuer’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.

Dated as of March 28, 2013.

/s/ “Donald J. Walker”

Donald J. Walker

Chief Executive Officer

EX-99.2

Exhibit 99.2

CERTIFICATION

I, Vincent J. Galifi, Executive Vice-President and Chief Financial Officer, certify that:

1. I have reviewed this annual report on Form 40-F of Magna International Inc. (the issuer”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;

4. The issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and

5. The issuer’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.

Dated as of March 28, 2013.

/s/ “Vincent J. Galifi”

Vincent J. Galifi

Executive Vice-President and Chief Financial Officer

EX-99.3

Exhibit 99.3

CERTIFICATE OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002

I, Donald J. Walker, Chief Executive Officer of Magna International Inc. (the “Company”), certify that:

1. the Annual Report on Form 40-F of the Company dated March 28, 2013 for the fiscal year ending December 31, 2012 (the “Report”) fully complies with the requirements of Sections 13(a) and 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated as of March 28, 2013.

/s/ “Donald J. Walker”

Donald J. Walker

Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-99.4

Exhibit 99.4

CERTIFICATE OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002

I, Vincent J. Galifi, the Executive Vice-President and Chief Financial Officer of Magna International Inc. (the “Company”), certify that:

1. the Annual Report on Form 40-F of the Company dated March 28, 2013 for the fiscal year ending December 31, 2012 (the “Report”) fully complies with the requirements of Sections 13(a) and 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated as of March 28, 2013.

/s/ “Vincent J. Galifi”

Vincent J. Galifi

Executive Vice-President and

Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

FIXED ASSETS (Tables)

12 Months Ended

Dec. 31, 2012

Components of Fixed assets

Fixed assets consist of:

	2012			2011
Cost
Land	$	238		$	199
Buildings		1,513			1,195
Machinery and equipment		11,047			9,475
		12,798			10,869
Accumulated depreciation
Buildings		(541	)		(453	)
Machinery and equipment		(6,984	)		(6,180	)
	$	5,273		$	4,236

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Transactions With Related Parties - Additional Information (Detail) (USD $) In Millions, unless otherwise specified					12 Months Ended									12 Months Ended
	Dec. 31, 2012	Aug. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2010 Chief Executive Officer [Member]	Dec. 31, 2011 Related Party MID Member [Member]	Dec. 31, 2010 Related Party MID Member [Member]	Dec. 31, 2012 Honorary Chairman [Member]	Dec. 31, 2011 Honorary Chairman [Member]	Dec. 31, 2010 Honorary Chairman [Member]	Dec. 31, 2012 Trust for Benefit of Employees [Member]	Dec. 31, 2011 Trust for Benefit of Employees [Member]	Dec. 31, 2010 Trust for Benefit of Employees [Member]	Dec. 31, 2012 Related Party Companies Controlled By Stronach Group [Member] Person	Dec. 31, 2011 Related Party Companies Controlled By Stronach Group [Member]
Related Party Transaction [Line Items]
Percentage of Company acquired		27.00%
Cash consideration paid	$ 652	$ 75	$ 120	$ 106
Number of trustees and members of the class of potential beneficiaries														3
Related party expense						166	172	47	38	41
Sales to companies controlled by the Stronach Group														12	36
Services to companies controlled by the Stronach Group														5	7
Proceeds from sale of building					43
Amount borrowed from company to purchase common shares maximum											18	35	31
Amount included in accounts receivable											$ 17	$ 17

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Other (Income) Expense, Net - Other (Income) Expense, Net (Parenthetical) (Detail) In Millions, unless otherwise specified	12 Months Ended				12 Months Ended		3 Months Ended	12 Months Ended	3 Months Ended			12 Months Ended					3 Months Ended				12 Months Ended			1 Months Ended		3 Months Ended				12 Months Ended					12 Months Ended
	Dec. 31, 2012 USD ($)	Dec. 31, 2010 USD ($)	Aug. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2012 STT Technologies Inc. [Member] USD ($)	Oct. 26, 2012 STT Technologies Inc. [Member]	Mar. 31, 2010 Rest Of World [Member] USD ($)	Dec. 31, 2010 Rest Of World [Member] USD ($)	Dec. 31, 2011 North America [Member] USD ($)	Sep. 30, 2011 North America [Member] USD ($)	Dec. 31, 2010 North America [Member] USD ($)	Dec. 31, 2012 North America [Member] USD ($)	Dec. 31, 2011 North America [Member] USD ($)	Dec. 31, 2010 North America [Member] USD ($)	Dec. 31, 2012 North America [Member] STT Technologies Inc. [Member] USD ($)	Oct. 26, 2012 North America [Member] STT Technologies Inc. [Member] USD ($)	Dec. 31, 2012 Europe [Member] USD ($)	Dec. 31, 2011 Europe [Member] USD ($)	Sep. 30, 2011 Europe [Member] USD ($)	Dec. 31, 2010 Europe [Member] USD ($)	Dec. 31, 2012 Europe [Member] USD ($)	Dec. 31, 2011 Europe [Member] USD ($)	Dec. 31, 2010 Europe [Member] USD ($)	Aug. 31, 2012 Corporate [Member] USD ($)	Aug. 31, 2010 Corporate [Member] USD ($)	Sep. 30, 2012 Corporate [Member] USD ($)	Jun. 30, 2011 Corporate [Member] USD ($)	Jun. 30, 2011 Corporate [Member] CAD	Mar. 31, 2011 Corporate [Member] USD ($)	Dec. 31, 2012 Corporate [Member] USD ($)	Dec. 31, 2011 Corporate [Member] USD ($)	Dec. 31, 2010 Corporate [Member] USD ($)	Aug. 31, 2010 Corporate [Member] USD ($)	Aug. 31, 2010 Corporate [Member] Stronach Group [Member] USD ($)	Dec. 31, 2010 Facility Closing [Member] North America [Member] USD ($)
Component of Operating Other Cost and Expense [Line Items]
Long-lived asset impairment charges									$ 7		$ 7	$ 2	$ 7	$ 7			$ 23	$ 14		$ 16	$ 23	$ 14	$ 16
Long-lived asset impairment charges after tax									7		5	1					22	13		16
Company acquired			27.00%			50.00%										50.00%								27.00%										27.00%
Cash acquired consideration	652	106	75	120	55											55								75										80
Estimated fair value															55											205
Recognition of non-cash	188				35							35			35											153				153
Recognition of non-cash after tax															35											125
Settlement agreement										11
Insurance proceeds									15
Restructuring and rationalization costs in cost of goods sold																																			32
Restructuring and rationalization costs in cost of goods sold after tax																																			27
Restructuring charges to be paid									7				7
Restructuring charges														32			55				55
Restructuring charges after Tax																	53
Loss (gain) on disposal of facility							(14)	(14)										129	113			129
Company agreed to fund the buyer against the losses on disposal																			67
Remaining assets assigned no value by buyer																			26
Customer costs reimburse																			20
Long lived asset impairment charges related to an interior systems facility																		16
Charge related to the insolvency																		11				11
Proceeds from sale of interest in intangible assets							30
Percentage of non-controlling interest in an equity accounted investment																								73.00%			40.00%	40.00%					73.00%
Impairment charges for assets																													9
Proceeds from sale of equity method investments																											151	147
Gain on sale of investment																											10				(10)
Cash investment																									145								145
Company showed a reduction of cash		91																							91
Gain recognized in income																									$ 16							$ (16)

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COMMON SHARES (Tables)

12 Months Ended

Dec. 31, 2012

Maximum number of shares outstanding exercised or converted

[d] The following table presents the maximum number of shares that would be outstanding if all the dilutive instruments outstanding at March 7, 2013 were exercised or converted:

Common Shares	233,839,998
Stock options [note 17]	6,535,694
	240,375,692

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Income Taxes - Additional Information (Detail) (USD $)	3 Months Ended	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Taxes [Line Items]
Valuation allowances released	$ 89,000,000	$ 89,000,000	$ 78,000,000	$ 3,000,000
Remaining valuation allowances	94,000,000	94,000,000
Income taxes paid, net		347,000,000	304,000,000	(6,000,000)
Income tax loss carryforwards	2,080,000,000	2,080,000,000
Losses on acquisition	35,000,000	35,000,000
Total losses	1,110,000,000	1,110,000,000
Expiry date of losses		Between 2013 and 2032
Gross unrecognized tax benefits	279,000,000	279,000,000	252,000,000	257,000,000
Recognized tax benefits	240,000,000	240,000,000	222,000,000
Interest and penalties, on the unrecognized tax benefits	49,000,000	49,000,000	42,000,000
Reserves for interest and penalties	7,000,000	7,000,000
Decrease in gross unrecognized tax benefits	155,000,000	155,000,000
Decrease in recognized tax benefits	$ 140,000,000	$ 140,000,000

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Earnings Per Share - Computation of Earnings per share (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Earnings Per Share [Line Items]
Net income attributable to Magna International Inc.	$ 1,433	$ 1,018	$ 1,003
Average number of Common and Class B Shares outstanding during the year	232.4	239.3	230.0
Basic earnings per Common or Class B Share	$ 6.17	$ 4.26	$ 4.36
Stock options and restricted stock	2.8	3.5	3.0
Diluted	235.2	242.8	233.0
Diluted earnings per Common or Class B Share	$ 6.09	$ 4.20	$ 4.30

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Warranty - Schedule of Company's Warranty Accruals (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Balance, beginning of year	$ 76	$ 68	$ 75
Expense, net	43	46	32
Settlements	(46)	(38)	(37)
Acquisitions [note 6]	17
Foreign exchange and other	4		(2)
Balance, end of year	$ 94	$ 76	$ 68

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Common Shares - Maximum Number of Shares Outstanding Exercised or converted (Detail) (Common Shares [Member], Subsequent Event [Member])	Mar. 07, 2013
Common Shares [Member] | Subsequent Event [Member]
Common Shares [Line Items]
Common Shares	233,839,998
Stock options [note 17]	6,535,694
Total number of shares outstanding	240,375,692

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OTHER LONG-TERM LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2012

Particulars of Other long-term liabilities

Other long-term liabilities consist of:

	2012		2011
Long-term portion of income taxes payable	$	94	$	119
Asset retirement obligation		39		36
Long-term portion of fair value of hedges [note 20]		10		41
Deferred revenue		11		11
	$	154	$	207

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OTHER (INCOME) EXPENSE, NET (Tables)

12 Months Ended

Dec. 31, 2012

Other (Income) Expense, Net

Other (income) expense, net consists of:

	2012			2011			2010
North America [a]
Impairment of long-lived assets	$	2		$	7		$	7
Re-measurement gain of STT		(35	)		—			—
Settlement agreement		—			11			—
Insurance proceeds		—			(15	)		—
Restructuring charges		—			—			32
		(33	)		3			39
Europe [b]
Restructuring charges		55			—			—
Impairment of long-lived assets		23			14			16
Loss on disposal of facility		—			129			—
Customer bankruptcy		—			11			—
		78			154			16
Rest of World [c]
Gain on disposal of facility		—			—			(14	)
Corporate [d]
Re-measurement gain of E-Car		(153	)		—			—
Write down of real estate		—			9			—
Gain on sale of investment		—			(10	)		—
Gain on deconsolidation of E-Car		—			—			(16	)
		(153	)		(1	)		(16	)
	$	(108	)	$	156		$	25

[a] North America

For the year ended December 31, 2012

In conjunction with its annual business planning cycle, during the fourth quarter of 2012 the Company recorded long-lived asset impairment charges of $2 million [$1 million after tax] in North America related to specific fixed assets at a metal fabricating facility in the United States.

On October 26, 2012, the Company acquired the remaining 50% interest in STT Technologies Inc. [“STT”] for cash consideration of $55 million. STT is a manufacturer of automotive pumps with operations in Canada and Mexico. Prior to the acquisition, the Company accounted for this investment using the equity method of accounting.

The incremental investment in STT was accounted for under the business acquisition method of accounting as a step acquisition which requires that Magna re-measures its pre-existing investment in STT at fair value and recognize any gains or losses in income. The estimated fair value of Magna’s investment immediately before the closing date was $55 million, which resulted in the recognition of a non-cash gain of $35 million [$35 million after tax].

For the year ended December 31, 2011

During the third quarter of 2011, a settlement agreement was finalized in connection with the settlement of certain patent infringement and other claims. The Company recorded an $11 million expense in the third quarter of 2011 in relation to these arrangements.

During the fourth quarter of 2011, the Company recorded long-lived asset impairment charges of $7 million [$7 million after tax] related to a roof systems facility in the United States.

During the fourth quarter of 2011, the Company received proceeds pursuant to an insurance claim for fire damages related to an interior systems facility in the United States. The proceeds received were $15 million in excess of the damaged assets’ net book value and the losses previously recognized, and was recorded in income.

For the year ended December 31, 2010

During the fourth quarter of 2010, the Company recorded long-lived asset impairment charges of $7 million [$5 million after tax] related to a die casting facility in Canada.

In addition, during 2010, the Company recorded restructuring and rationalization costs of $32 million [$27 million after tax] related to the planned closure of a powertrain systems facility and two body & chassis systems facilities in the United States, approximately $7 million remains to be paid subsequent to 2012.

[b] Europe

For the year ended December 31, 2012

As a result of continuing economic uncertainty in Europe, recent customer announcements related to plant closures, the profitability of certain facilities and the level of future booked business, management determined that restructuring would have to be completed in its traditional European markets in order to remain cost competitive over the long-term. As a result, during the fourth quarter of 2012, the Company recorded restructuring charges of $55 million [$53 million after tax] in Europe primarily at its exterior and interior systems and complete vehicle and engineering services operations.

Substantially all of these restructuring costs will be paid subsequent to 2012.

During the fourth quarter of 2012, the Company recorded long-lived asset impairment charges of $23 million [$22 million after tax] primarily related to exterior and interior systems facilities.

For the year ended December 31, 2011

During the third quarter of 2011, the Company sold an interior systems operation located in Germany and recorded a loss on disposal of $113 million. This operation, whose long-lived assets were substantially impaired in 2010, had a history of losses which were projected to continue throughout the business planning period. Under the terms of the 2011 sale arrangements [the “SPA”], the Company agreed to fund the buyer $67 million, to be satisfied with certain working capital items, cash and the assumption of certain liabilities. The remaining net assets of the operation of $26 million were assigned no value by the buyer and accordingly, were expensed as part of the total loss on disposal. Simultaneously, the Company reached a commercial settlement with one of the facility’s customers regarding the cancellation of certain production orders whereby the Company reimbursed the customer costs of $20 million.

Final settlement of the SPA did not occur during 2011 and in the fourth quarter of 2011 an additional $16 million was accrued in relation to the ongoing disputes with the purchaser bringing the total loss on disposal to $129 million.

As more fully described in note 6, on June 4, 2012, the Company re-acquired the above operation.

During the fourth quarter of 2011, the Company recorded long-lived asset impairment charges of $14 million [$13 million after tax] related to various facilities in Europe.

During the fourth quarter of 2011, the Company recorded an $11 million charge related to the insolvency of Saab.

For the year ended December 31, 2010

During the fourth quarter of 2010, the Company recorded long-lived asset impairment charges of $16 million [$16 million after tax] related to an interior systems facility in Germany.

[c] Rest of World

For the year ended December 31, 2010

During the first quarter of 2010, the Company sold its interest in an electronics systems joint venture in China for proceeds of $30 million and recognized a $14 million gain on disposal.

[d] Corporate

For the year ended December 31, 2012

On August 31, 2012, the Company acquired the controlling 27% interest in the Magna E-Car Systems L.P. [“E-Car”] partnership from a company affiliated with the Stronach Group for cash consideration of $75 million. The purchase was reviewed, negotiated and approved by the Company’s independent directors with the benefit of independent legal advice from Fasken Martineau DuMoulin LLP, independent financial advice from TD Securities Inc. [“TD”] and an independent valuation prepared by PricewaterhouseCoopers LLP [“PwC”]. The purchase price represents the midpoint of the valuation range determined by PwC and TD delivered a fairness opinion to the independent directors to the effect that the transaction is fair, from a financial point of view, to the Company.

Prior to the acquisition, the Company held the remaining 73% non-controlling interest in E-Car and accounted for this investment using the equity method of accounting.

The incremental investment in E-Car was accounted for under the business acquisition method of accounting as a step acquisition. The estimated fair value of Magna’s partnership interest immediately before the closing date was $205 million, which resulted in the recognition of a non-cash gain of $153 million [$125 million after tax].

For the year ended December 31, 2011

During 2011, five excess corporate real estate assets were sold to entities associated with the Company’s Founder and Honorary Chairman, Mr. Stronach and/or the Company’s former Co-Chief Executive Officer, Siegfried Wolf. Based on the appraisals obtained by the former Corporate Governance and Compensation Committee, the appraised fair value range for the properties was less than their carrying value and, accordingly, the Company recorded a $9 million impairment charge in the first quarter of 2011. The sales were approved by the independent members of Magna’s Board of Directors based on the recommendations of the former Corporate Governance and Compensation Committee and were completed during 2011.

During the second quarter of 2011, the Company sold its 40% non-controlling interest in an equity accounted investment for proceeds of $151 million [Cdn$147 million] and recognized a $10 million gain on disposal.

For the year ended December 31, 2010

On August 31, 2010, following approval by the Company’s former Class A Subordinate Voting and Class B Shareholders, the Company completed a court-approved plan of arrangement [the “Arrangement”] in which its dual-class share structure was collapsed. In addition, the transaction: [i] set a declining fee schedule for the consulting, business development and business services contracts Magna has in place with its former Chairman, Frank Stronach and his affiliated entities and a termination date of December 31, 2014; and [ii] established a partnership with the Stronach Group to pursue opportunities in the vehicle electrification business.

E-Car, involved the engineering, development and integration of electric vehicles of any type, the development, testing and manufacturing of batteries and battery packs for hybrid and electric vehicles and all ancillary activities in connection with electric vehicle technologies. Magna’s original investment in the partnership included the assets of the Company’s recently established E-Car Systems vehicle electrification and battery business unit, certain other vehicle electrification assets, and $145 million in cash. On August 31, 2010, the Stronach Group invested $80 million in cash for a 27% controlling equity interest in the partnership, reducing Magna’s equity interest to 73%. The Company had no obligation to make additional investments in E-Car under the terms of the E-Car partnership agreement. For accounting purposes, the partnership was a variable interest entity. Magna was not considered the primary beneficiary; and as a result, the Company’s interest in E-Car was accounted for using the equity method. As a result of deconsolidating the E-Car partnership, the Company showed a reduction of cash of $91 million representing the cash in the partnership at August 31, 2010. In addition, the Company recorded its investment in E-Car at its fair value and recognized a $16 million gain in income.

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Debt And Commitments - Schedule of Company's Long-term Debt (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Total long-term debt	$ 361	$ 197
Less due within one year	249	151
Total long term non current debt	112	46
Bank Term Debt [Member]
Total long-term debt	268	137
Government Loans [Member]
Total long-term debt	15	18
Other Long Term Debt [Member]
Total long-term debt	$ 78	$ 42

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Segmented Information - Schedule of Aggregates External Revenues by Customer (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Revenue from External Customer [Line Items]
Revenue from external customers	$ 30,837	$ 28,748	$ 23,465
General Motors [Member]
Revenue from External Customer [Line Items]
Revenue from external customers	5,704	6,202	4,731
Fiat or Chrysler Group [Member]
Revenue from External Customer [Line Items]
Revenue from external customers	4,637	3,864	3,102
BMW [Member]
Revenue from External Customer [Line Items]
Revenue from external customers	4,100	4,191	3,090
Ford Motor Company [Member]
Revenue from External Customer [Line Items]
Revenue from external customers	3,848	3,549	3,371
Volkswagen [Member]
Revenue from External Customer [Line Items]
Revenue from external customers	3,835	3,187	2,567
Daimler AG [Member]
Revenue from External Customer [Line Items]
Revenue from external customers	3,367	2,793	2,354
Other Customers [Member]
Revenue from External Customer [Line Items]
Revenue from external customers	$ 5,346	$ 4,962	$ 4,250

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Income Taxes - Summary of Deferred Income Taxes Provided on Temporary Differences (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Taxes [Line Items]
Tax depreciation greater (less) than book depreciation		$ 13	$ 51	$ (13)
Book amortization less than (in excess of) tax amortization		16		(20)
Liabilities currently not deductible for tax		(29)	(28)	(27)
Net tax losses (benefited) utilized		(11)	(37)	48
Change in valuation allowance on deferred tax assets	(89)	(89)	(78)	(3)
Net tax credits utilized		53	24	0
Other		1	(8)	(2)
Deferred income tax, Total		$ (46)	$ (76)	$ (17)

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Long-Term Employee Benefit Liabilities - Company's Termination and Long Service Arrangements (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Employee Benefit Plans [Line Items]
Long-term employee benefit liabilities	$ 560	$ 419	$ 356
Termination And Long Service Arrangements [Member]
Employee Benefit Plans [Line Items]
Beginning of year	237	220	190
Current service cost	15	14	13
Interest cost	12	10	11
Actuarial losses and changes in actuarial assumptions	41	14	33
Benefits paid	(12)	(11)	(12)
Curtailment	(4)	0	0
Divestitures	0	0	(3)
Currency translation	7	(10)	(12)
Ending funded status	296	237	220
Current liability	10	8	8
Long-term employee benefit liabilities	286	229	212
Net amount	296	237	220
Unrecognized actuarial losses	(73)	(45)	(41)
Current service cost	15	14	13
Interest cost	12	10	11
Actuarial losses	12	6	5
Net periodic benefit cost	$ 39	$ 30	$ 29

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Details of Consolidated Statements of Cash Flows - Components of Cash and Cash Equivalents (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Bank term deposits, bankers' acceptances and government paper	$ 1,220	$ 968
Cash	302	357
Cash and cash equivalents	$ 1,522	$ 1,325	$ 1,881	$ 1,270

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Financial Instruments - Foreign Exchange Forward Contracts Representing Commitments to Buy and Sell Various Foreign Currencies (Detail) In Millions, unless otherwise specified					12 Months Ended				12 Months Ended				12 Months Ended			12 Months Ended			12 Months Ended		12 Months Ended		12 Months Ended										12 Months Ended								12 Months Ended								12 Months Ended							12 Months Ended
	Dec. 31, 2012 Canadian Dollar [Member] USD ($)	Dec. 31, 2012 Canadian Dollar [Member] EUR (€)	Dec. 31, 2012 Canadian Dollar [Member] 2013 [Member] USD ($)	Dec. 31, 2012 Canadian Dollar [Member] 2013 [Member] EUR (€)	Dec. 31, 2012 Canadian Dollar [Member] 2013 [Member] U S Dollar [Member]	Dec. 31, 2012 Canadian Dollar [Member] 2013 [Member] Euros [Member]	Dec. 31, 2012 Canadian Dollar [Member] 2014 [Member] USD ($)	Dec. 31, 2012 Canadian Dollar [Member] 2014 [Member] EUR (€)	Dec. 31, 2012 Canadian Dollar [Member] 2014 [Member] U S Dollar [Member]	Dec. 31, 2012 Canadian Dollar [Member] 2014 [Member] Euros [Member]	Dec. 31, 2012 Canadian Dollar [Member] 2015 [Member] USD ($)	Dec. 31, 2012 Canadian Dollar [Member] 2015 [Member] EUR (€)	Dec. 31, 2012 Canadian Dollar [Member] 2015 [Member] U S Dollar [Member]	Dec. 31, 2012 Canadian Dollar [Member] 2016 [Member] USD ($)	Dec. 31, 2012 Canadian Dollar [Member] 2016 [Member] EUR (€)	Dec. 31, 2012 Canadian Dollar [Member] 2016 [Member] U S Dollar [Member]	Dec. 31, 2012 U S Dollar [Member] MXN	Dec. 31, 2012 U S Dollar [Member] 2013 [Member] MXN	Dec. 31, 2012 U S Dollar [Member] 2013 [Member] Mexican Peso [Member]	Dec. 31, 2012 U S Dollar [Member] 2014 [Member] MXN	Dec. 31, 2012 U S Dollar [Member] 2014 [Member] Mexican Peso [Member]	Dec. 31, 2012 U S Dollar [Member] 2015 [Member] MXN	Dec. 31, 2012 U S Dollar [Member] 2015 [Member] Mexican Peso [Member]	Dec. 31, 2012 U S Dollar [Member] 2016 [Member] MXN	Dec. 31, 2012 Euros [Member] USD ($)	Dec. 31, 2012 Euros [Member] CZK	Dec. 31, 2012 Euros [Member] GBP (£)	Dec. 31, 2012 Euros [Member] PLN	Dec. 31, 2012 Euros [Member] 2013 [Member] USD ($)	Dec. 31, 2012 Euros [Member] 2013 [Member] CZK	Dec. 31, 2012 Euros [Member] 2013 [Member] GBP (£)	Dec. 31, 2012 Euros [Member] 2013 [Member] PLN	Dec. 31, 2012 Euros [Member] 2013 [Member] U S Dollar [Member]	Dec. 31, 2012 Euros [Member] 2013 [Member] British Pound [Member]	Dec. 31, 2012 Euros [Member] 2013 [Member] Czech Koruna [Member]	Dec. 31, 2012 Euros [Member] 2013 [Member] Polish Zloty [Member]	Dec. 31, 2012 Euros [Member] 2014 [Member] USD ($)	Dec. 31, 2012 Euros [Member] 2014 [Member] CZK	Dec. 31, 2012 Euros [Member] 2014 [Member] GBP (£)	Dec. 31, 2012 Euros [Member] 2014 [Member] PLN	Dec. 31, 2012 Euros [Member] 2014 [Member] U S Dollar [Member]	Dec. 31, 2012 Euros [Member] 2014 [Member] British Pound [Member]	Dec. 31, 2012 Euros [Member] 2014 [Member] Czech Koruna [Member]	Dec. 31, 2012 Euros [Member] 2014 [Member] Polish Zloty [Member]	Dec. 31, 2012 Euros [Member] 2015 [Member] USD ($)	Dec. 31, 2012 Euros [Member] 2015 [Member] CZK	Dec. 31, 2012 Euros [Member] 2015 [Member] GBP (£)	Dec. 31, 2012 Euros [Member] 2015 [Member] PLN	Dec. 31, 2012 Euros [Member] 2015 [Member] U S Dollar [Member]	Dec. 31, 2012 Euros [Member] 2015 [Member] British Pound [Member]	Dec. 31, 2012 Euros [Member] 2015 [Member] Czech Koruna [Member]	Dec. 31, 2012 Euros [Member] 2016 [Member] USD ($)	Dec. 31, 2012 Euros [Member] 2016 [Member] CZK	Dec. 31, 2012 Euros [Member] 2016 [Member] GBP (£)	Dec. 31, 2012 Euros [Member] 2016 [Member] PLN	Dec. 31, 2012 Euros [Member] 2016 [Member] U S Dollar [Member]
Derivative [Line Items]
Notional amount of foreign currency derivatives	$ (684)	€ 74															6,049								$ (123)	4,833	£ 71	127
Foreign exchange forward contract, Purchases Exchange Rate					1.01252	1.31881			1.04151	1.31939			1.03073			1.03697			0.07313		0.06844		0.06894										0.75541	1.17565	0.03988	0.23344					0.74515	1.14482	0.03980	0.22452						1.19170	0.03971
Foreign exchange forward contract, Sales Exchange Rate					1.02054	1.28626			1.01573				1.01754			1.04751																	0.76441	1.24572	0.04014						0.77097								0.77597							0.77162
Foreign exchange forward contract, Purchases			229	48			31	34			23			12				3,179		2,071		799							53	2,488	41	86					17	1,572	31	41						784	13
Foreign exchange forward contract, Sales			$ (600)	€ (8)			$ (271)				$ (104)			$ (4)															$ (93)	(11)	£ (14)						$ (52)								$ (35)							$ (13)

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Income Taxes - Summary of Changes in Gross Unrecognized Tax Benefits (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Income Taxes [Line Items]
Balance, beginning of year	$ 252	$ 257
Additions based on tax positions related to current year	68	14
(Reductions)/additions based on tax positions of prior years	(31)	13
Settlements	(10)	(12)
Statute expirations	(5)	(16)
Foreign currency translation	5	(4)
Balance, ending of year	$ 279	$ 252

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Long-Term Employee Benefit Liabilities - Summary of Weighted Average Significant Actuarial Assumptions Adopted in Measuring Company's Obligations and Cost (Detail) (Pension Plans, Defined Benefit [Member])	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Pension Plans, Defined Benefit [Member]
Discount rate	4.10%	4.70%	5.50%
Rate of compensation increase	2.80%	2.80%	2.60%
Discount rate	4.70%	5.20%	5.90%
Rate of compensation increase	2.80%	2.70%	3.50%
Expected return on plan assets	7.00%	7.10%	7.70%

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Debt And Commitments - Schedule of Future Principal Repayments on Long-term Debt (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
2013	$ 249
2014	24
2015	31
2016	16
2017	16
Thereafter	25
Total long-term debt	$ 361	$ 197

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Long-Term Employee Benefit Liabilities - Schedule of Company's Defined Benefit Pension Plans (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Defined Benefit Plan Disclosure [Line Items]
Long-term employee benefit liabilities	$ 560	$ 419	$ 356
Pension Plans, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Beginning of year	403	352	330
Current service cost	12	11	11
Interest cost	19	19	18
Actuarial losses (gains) and changes in actuarial assumptions	50	42	(5)
Benefits paid	(19)	(14)	(17)
Special termination benefit	0	1	8
Acquisition	49	0	5
Divestitures	0	(3)	0
Currency translation	6	(5)	2
End of year	520	403	352
Beginning of year	259	253	218
Return on plan assets	26	0	25
Employer contributions	19	24	21
Benefits paid	(19)	(14)	(15)
Currency translation	3	(4)	4
End of year	288	259	253
Ending funded status	232	144	99
Non-current asset	0	(1)	0
Current liability	2	2	2
Long-term employee benefit liabilities	230	143	97
Net amount	232	144	99
Unrecognized actuarial losses	(142)	(101)	(42)
Current service cost	12	11	11
Interest cost	19	19	18
Return on plan assets	(19)	(19)	(17)
Actuarial losses	3	1	2
Special termination benefit	0	1	8
Net periodic benefit cost	$ 15	$ 13	$ 22

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Other Assets - Summary of Other Assets (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Schedule Of Other Assets [Line Items]
Preproduction costs related to long-term supply agreements with contractual guarantee for reimbursement	$ 297	$ 301
Long-term receivables [note 20]	95	176
Patents and licenses, net	34	30
Unrealized gain on cash flow hedges [note 20]	32	15
E-Car intangible [note 6]	158	0
Other, net [note 6]	137	72
Total other assets	$ 753	$ 594

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Income Taxes - Details of Income before Income Taxes by Jurisdiction (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Taxes [Line Items]
Canadian	$ 996	$ 710	$ 497
Foreign	754	507	700
Income before income taxes, Total	$ 1,750	$ 1,217	$ 1,197

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COMMON SHARES

12 Months Ended

Dec. 31, 2012

COMMON SHARES

18. COMMON SHARES

[a] At December 31, 2012, the Company’s authorized, issued and outstanding Common Shares are as follows:

Preference shares – issuable in series –

The Company’s authorized Common Shares include 99,760,000 preference shares, issuable in series. None of these shares are currently issued or outstanding.

Common Shares and Class B Shares –

In accordance with the Arrangement [note 18[c]], Magna’s Articles were amended to remove the Class B Shares from the authorized capital and to make non-substantive consequential changes to its Articles, including renaming the Class A Subordinate Voting Shares as Common Shares and eliminating provisions which no longer apply due to the elimination of the Class B Shares.

Common Shares without par value [unlimited amount authorized] have the following attributes:

[i] Each share is entitled to one vote per share at all meetings of shareholders.

[ii] Each share shall participate equally as to dividends.

[b] On November 9, 2010, the TSX accepted the Company’s Notice of Intention to Make a Normal Course Issuer Bid relating to the purchase of up to 8,000,000 Magna Common Shares [the “2010 Bid”]. The 2010 Bid commenced on November 11, 2010 and terminated on November 10, 2011 pursuant to which the Company purchased 8,000,000 shares.

On November 9, 2011, the TSX accepted the Company’s Notice of Intention to Make a Normal Course Issuer Bid relating to the purchase for cancellation, as well as purchases to fund the Company’s stock-based compensation awards or programs and/or the Company’s obligations to its deferred profit sharing plans, of up to 12,000,000 Magna Common Shares [the “2011 Bid”], representing 5.1% of the Company’s public float of Common Shares. The 2011 Bid commenced on November 11, 2011 and terminated on November 10, 2012 pursuant to which the Company purchased 3,668,430 shares.

On November 9, 2012, the TSX accepted the Company’s Notice of Intention to Make a Normal Course Issuer Bid relating to the purchase for cancellation, as well as purchases to fund the Company’s stock-based compensation awards or programs and/or the Company’s obligations to its deferred profit sharing plans, of up to 12,000,000 Magna Common Shares [the “2012 Bid”], representing 5.2% of the Company’s public float of Common Shares. The Bid commenced on November 13, 2012 and will terminate no later than November 12, 2013. As at December 31, 2012, the Company has purchased 427,402 shares.

During 2012, the Company purchased for cancellation 895,032 [2011 – 10,747,300] Common Shares under the 2011 and 2012 Bids for cash consideration of $39 million [2011 – $407 million].

All purchases of Common Shares are made at the market price at the time of purchase in accordance with the rules and policies of the TSX. Purchases may also be made on the NYSE in compliance with Rule 10b-18 under the U.S. Securities Exchange Act of 1934.

[c] As more fully described in note 3, the Company completed an arrangement in which its dual-class share structure was collapsed. The Company purchased for cancellation all 1,453,658 outstanding Class B Shares, which were held indirectly by the Stronach Group, for $300 million in cash and 18.0 million newly issued Class A Subordinate Voting Shares. The newly issued shares held indirectly by the Stronach Group represented an equal equity ownership and voting interest of 7.4% as of August 31, 2010. The costs related to the Arrangement were $10 million, net of tax.

In addition, Magna’s Articles were amended to remove the Class B Shares from the authorized capital and to make non-substantive consequential changes, including renaming the Class A Subordinate Voting Shares as Common Shares and eliminating provisions which no longer apply due to the elimination of the Class B Shares.

[d] The following table presents the maximum number of shares that would be outstanding if all the dilutive instruments outstanding at March 7, 2013 were exercised or converted:

Common Shares	233,839,998
Stock options [note 17]	6,535,694
	240,375,692

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FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2012

Foreign exchange forward contracts representing commitments to buy and sell various foreign currencies

At December 31, 2012, the Company had outstanding foreign exchange forward contracts representing commitments to buy and sell various foreign currencies. Significant commitments are as follows:

	For Canadian dollars										For U.S. dollars
Buy (Sell)	U.S. dollar amount			Weighted average rate		Euro amount			Weighted average rate		Peso amount		Weighted average rate
2013		229			1.01252		48			1.31881		3,179		0.07313
2013		(600	)		1.02054		(8	)		1.28626		—		—
2014		31			1.04151		34			1.31939		2,071		0.06844
2014		(271	)		1.01573		—			—		—		—
2015		23			1.03073		—			—		799		0.06894
2015		(104	)		1.01754		—			—		—		—
2016		12			1.03697		—			—		—		—
2016		(4	)		1.04751		—			—		—		—
		(684	)				74					6,049

	For euros
Buy (Sell)	U.S. dollar amount			Weighted average rate		GBP amount			Weighted average rate		Czech Koruna amount			Weighted average rate		Polish Zlotys amount		Weighted average rate
2013		53			0.75541		41			1.17565		2,488			0.03988		86		0.23344
2013		(93	)		0.76441		(14	)		1.24572		(11	)		0.04014		—		—
2014		17			0.74515		31			1.14482		1,572			0.03980		41		0.22452
2014		(52	)		0.77097		—			—		—			—		—		—
2015		—			—		13			1.19170		784			0.03971		—		—
2015		(35	)		0.77597		—			—		—			—		—		—
2016		(13	)		0.77162		—			—		—			—		—		—
		(123	)				71					4,833					127

Schedule of Company's financial assets and liabilities

The Company’s financial assets and liabilities consist of the following:

	2012		2011
Held-for-trading
Cash and cash equivalents	$	1,522	$	1,325
Investment in ABCP [note 8]		90		82
	$	1,612	$	1,407
Held-to-maturity investments
Severance investments	$	8	$	5
Available-for-sale investments
Equity investments	$	9	$	12
Loans and receivables
Accounts receivable	$	4,774	$	4,398
Long-term receivables included in other assets [note 12]		95		176
	$	4,869	$	4,574

	2012			2011
Other financial liabilities
Bank indebtedness	$	71		$	36
Long-term debt (including portion due within one year)		361			197
Accounts payable		4,450			3,961
	$	4,882		$	4,194
Derivatives designated as effective hedges, measured at fair value
Foreign currency contracts
Prepaid expenses	$	37		$	21
Other assets		32			15
Other accrued liabilities		(11	)		(31	)
Other long-term liabilities		(9	)		(38	)
		49			(33	)
Natural gas contracts
Prepaid expenses		2			—
Other accrued liabilities		(3	)		(6	)
Other long-term liabilities		(1	)		(3	)
		(2	)		(9	)
	$	47		$	(42	)

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OTHER ASSETS (Tables)

12 Months Ended

Dec. 31, 2012

Summary of other assets

Other assets consist of:

	2012		2011
Preproduction costs related to long-term supply agreements with contractual guarantee for reimbursement	$	297	$	301
Long-term receivables [note 20]		95		176
Patents and licenses, net		34		30
Unrealized gain on cash flow hedges [note 20]		32		15
E-Car intangible [note 6]		158		—
Other, net [note 6]		137		72
	$	753	$	594

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Income Taxes - Net Deferred Tax Assets Presented on Consolidated Balance Sheet (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Income Taxes [Line Items]
Current deferred tax assets	$ 170	$ 206
Current deferred tax liabilities	(19)	(44)
Long-term deferred tax assets	90	69
Long-term deferred tax liabilities	(141)	(81)
Net deferred tax assets	$ 100	$ 150

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Stock-Based Compensation - Schedule of Options Outstanding (Parenthetical) (Detail) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended					12 Months Ended		1 Months Ended	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Nov. 08, 2010	Aug. 19, 2010	Feb. 26, 2012 Stock Option Holder [Member]	Jul. 13, 2011 Stock Option Holder [Member]	Jun. 22, 2012 Chairman And Founder [Member]	Aug. 16, 2012 Chairman And Founder [Member]	Feb. 26, 2012 Chairman And Founder [Member]	Jul. 13, 2011 Chairman And Founder [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value of options exercised	$ 6	$ 19	$ 14
Stock option shares surrendered				386,666	243,000
In-the-money value of surrendered stock options				8	4
Exercised number of shares, under stock option plan						200,000	200,001	1,083,333	900,001
Cash payments made on cashless exercise of stock options								$ 25	$ 15	$ 4	$ 5

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INVENTORIES (Tables)

12 Months Ended

Dec. 31, 2012

Inventories

Inventories consist of:

	2012		2011
Raw materials and supplies	$	911	$	800
Work-in-process		260		229
Finished goods		283		253
Tooling and engineering		1,058		763
	$	2,512	$	2,045

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Significant Accounting Policies - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2012 Center Operations Country Employee
Significant Accounting Policies [Line Items]
Number of manufacturing operations	313
Number of product development, engineering and sales centres	88
Number of countries in which entity operates	29
Number of employees	119,000
Short-term investments maturity period maximum	3 months
Short-term investments maturity period	Less than three months
Estimated useful lives of definite-lived intangible assets	5 years
Changes in assumptions and experience gains and losses	Greater than 10%
Period of benefit obligation in current liabilities	Next 12 months
Minimum [Member] | Building [Member]
Significant Accounting Policies [Line Items]
Annual rates of depreciation on fixed assets	2.50%
Minimum [Member] | General Purpose Equipment [Member]
Significant Accounting Policies [Line Items]
Annual rates of depreciation on fixed assets	7.00%
Minimum [Member] | Special Purpose Equipment [Member]
Significant Accounting Policies [Line Items]
Annual rates of depreciation on fixed assets	10.00%
Maximum [Member] | Building [Member]
Significant Accounting Policies [Line Items]
Annual rates of depreciation on fixed assets	5.00%
Maximum [Member] | General Purpose Equipment [Member]
Significant Accounting Policies [Line Items]
Annual rates of depreciation on fixed assets	10.00%
Maximum [Member] | Special Purpose Equipment [Member]
Significant Accounting Policies [Line Items]
Annual rates of depreciation on fixed assets	33.00%

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Fixed Assets - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Property, Plant and Equipment [Line Items]
Construction in progress expenditures	$ 939	$ 842

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Financial Instruments - Schedule of Company's Financial Assets and Liabilities (Detail) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2012 Foreign Exchange Contract [Member] USD ($)	Dec. 31, 2011 Foreign Exchange Contract [Member] USD ($)	Dec. 31, 2012 Commodity Contract [Member] USD ($)	Dec. 31, 2011 Commodity Contract [Member] USD ($)	Dec. 31, 2012 Prepaid Expenses [Member] Foreign Exchange Contract [Member] USD ($)	Dec. 31, 2011 Prepaid Expenses [Member] Foreign Exchange Contract [Member] USD ($)	Dec. 31, 2012 Prepaid Expenses [Member] Commodity Contract [Member] USD ($)	Dec. 31, 2012 Other Assets [Member] Foreign Exchange Contract [Member] USD ($)	Dec. 31, 2011 Other Assets [Member] Foreign Exchange Contract [Member] USD ($)	Dec. 31, 2012 Other Accrued Liabilities [Member] Foreign Exchange Contract [Member] USD ($)	Dec. 31, 2011 Other Accrued Liabilities [Member] Foreign Exchange Contract [Member] USD ($)	Dec. 31, 2012 Other Accrued Liabilities [Member] Commodity Contract [Member] USD ($)	Dec. 31, 2011 Other Accrued Liabilities [Member] Commodity Contract [Member] USD ($)	Dec. 31, 2012 Other Long Term Liabilities [Member] Foreign Exchange Contract [Member] USD ($)	Dec. 31, 2011 Other Long Term Liabilities [Member] Foreign Exchange Contract [Member] USD ($)	Dec. 31, 2012 Other Long Term Liabilities [Member] Commodity Contract [Member] USD ($)	Dec. 31, 2011 Other Long Term Liabilities [Member] Commodity Contract [Member] USD ($)	Dec. 31, 2012 Cash and Cash Equivalents [Member] USD ($)	Dec. 31, 2011 Cash and Cash Equivalents [Member] USD ($)	Dec. 31, 2012 Asset-backed Securities [Member] USD ($)	Dec. 31, 2012 Asset-backed Securities [Member] CAD	Dec. 31, 2011 Asset-backed Securities [Member] USD ($)	Dec. 31, 2011 Asset-backed Securities [Member] CAD
Held-for-trading
Trading securities	$ 1,612	$ 1,407																		$ 1,522	$ 1,325	$ 90	90	$ 82	84
Held-to-maturity investments
Severance investments	8	5
Available-for-sale investments
Equity investments	9	12
Loans and receivables
Accounts receivable	4,774	4,398
Long-term receivables included in other assets [note 12]	95	176
Total	4,869	4,574
Other financial liabilities
Bank indebtedness	71	36
Long-term debt (including portion due within one year)	361	197
Accounts payable	4,450	3,961
Total	4,882	4,194
Derivatives designated as effective hedges, measured at fair value, Assets							37	21		32	15
Derivatives designated as effective hedges, measured at fair value, Total	47	(42)	49	(33)
Derivatives designated as effective hedges, measured at fair value, Liabilities					$ (2)	$ (9)			$ 2			$ (11)	$ (31)	$ (3)	$ (6)	$ (9)	$ (38)	$ (1)	$ (3)

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Business Acquisitions - Preliminary Purchase Equation (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended				12 Months Ended	1 Months Ended	12 Months Ended	1 Months Ended	12 Months Ended
	Dec. 31, 2012	Aug. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2012 BDW [Member]	Aug. 31, 2012 E-Car [Member]	Dec. 31, 2012 E-Car [Member]	Oct. 26, 2012 STT Technologies Inc. [Member]	Dec. 31, 2012 STT Technologies Inc. [Member]	Dec. 31, 2012 Ixetic Verwaltungs GmbH [Member]	Dec. 31, 2012 Other [Member]
Schedule Of Business Acquisitions Purchase Price Allocation [Line Items]
Cash	$ 127				$ 11		$ 19		$ 13	$ 64	$ 20
Non-cash working capital	(129)		35	(45)	(122)		(48)		9	54	(22)
Investments	3									3
Fixed assets	501		95	69	188		87		30	186	10
Goodwill, net	289		29	68	32		16	58	58	169	14
Other assets	94			40	17		9			68
Purchase intangibles	215						210		5
Long-term employee benefit liabilities	(49)						(2)			(45)	(2)
Long-term debt	(25)				(24)					(1)
Other long-term liabilities	(35)		(28)	(5)	(35)
Deferred tax liabilities	(68)				(23)				(5)	(39)	(1)
Non-controlling interests	(11)		(7)	(3)			(11)
Fair value of net assets	912				44		280		110	459	19
Less: Carrying value of Magna's equity accounted investment	(72)						(52)		(20)
Gain on re-measurement	(188)						(153)		(35)
Consideration paid	652	75	120	106	44		75		55	459	19
Less: Cash acquired	(127)				(11)	(19)	(19)	(13)	(13)	(64)	(20)
Net cash outflow	$ 525		$ 157	$ 120	$ 33		$ 56		$ 42	$ 395	$ (1)

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STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of options outstanding

The following is a continuity schedule of options outstanding [number of options in the table below are expressed in whole numbers]:

	Options outstanding
	Number of options			Weighted average exercise price		Number of options exercisable
Outstanding at December 31, 2009		7,150,544		Cdn$	34.26		4,988,544
Granted		6,341,000			34.04		—
Exercised		(1,504,616	)		34.31		(1,504,616	)
Cancelled [i]		(844,478	)		33.04		(844,478	)
Vested		—			—		722,666
Outstanding at December 31, 2010		11,142,450		Cdn$	34.22		3,362,116
Exercised [ii]		(2,737,253	)		33.28		(2,737,253	)
Cancelled		(1,537,830	)		48.86		(1,426,164	)
Vested		—			—		2,868,001
Outstanding at December 31, 2011		6,867,367		Cdn$	31.54		2,066,700
Granted		1,389,000			48.22		—
Exercised [iii]		(1,525,159	)		28.46		(1,525,159	)
Cancelled		(107,966	)		53.14		(58,967	)
Vested		—			—		2,745,000
Outstanding at December 31, 2012		6,623,242		Cdn$	35.39		3,227,574

The total intrinsic value of options exercised during 2012 was $6 million [2011 - $19 million; 2010 - $14 million].

[i] On August 19, 2010, options to acquire 243,000 Common Shares were surrendered for cancellation in exchange for payment of the in-the-money value of such options on such date. The aggregate in-the-money value of the options surrendered was $4 million and was charged to contributed surplus.

On November 8, 2010, options to acquire 386,666 Common Shares were surrendered for cancellation in exchange for payment of the in-the-money value of such options on such date. The aggregate in-the-money value of the options surrendered was $8 million and was charged to contributed surplus.

[ii] On June 22, 2011, the Company’s Honorary Chairman and Founder, Mr. Stronach, exercised 1,083,333 options on a cashless basis in accordance with applicable stock option plans. On exercise, cash payments totalling $25 million were made to Mr. Stronach.

On July 13, 2011, 200,001 options were exercised on a cashless basis in accordance with applicable stock option plans. On exercise, cash payments totalling $5 million were made to the stock option holder.

[iii] On February 26, 2012, 200,000 options were exercised on a cashless basis in accordance with applicable stock option plans. On exercise, cash payments totalling $4 million were made to the stock option holder.

Summary of characteristics of options outstanding

At December 31, 2012, the outstanding options consist of [number of options in the table below are expressed in whole numbers]:

	Options outstanding
	Number of options		Remaining contractual life [years]		Number of options exercisable
$15 to $20		986,868		3.2		986,868
$25 to $30		3,050,032		4.2		1,400,032
$35 to $40		60,000		4.0		60,000
$40 to $45		27,342		0.5		27,342
$45 to $50		1,384,000		2.8		10,000
$50 to $55		1,115,000		5.0		743,332
		6,623,242				3,227,574
Weighted average exercise price	Cdn$	35.39			Cdn$	30.93
Weighted average life remaining [years]		4.54				4.00
Aggregate intrinsic value at December 31, 2012	$	93			$	60

Fair value of stock options granted

The weighted average assumptions used in measuring the fair value of stock options granted or modified are as follows:

	2012			2011		2010
Risk-free interest rate		2.23	%		—		2.26	%
Expected dividend yield		2.00	%		—		2.00	%
Expected volatility		43	%		—		35	%
Expected time until exercise		4.5 years			—		4 years
Weighted average fair value of options granted or modified in year [Cdn$]	$	15.37		$	—	$	10.00

Schedule of reduction in stated value of company's common shares

The following is a continuity of the stock that has not been released to the executives and is reflected as a reduction in the stated value of the Company’s Common Shares [number of Common Shares in the table below are expressed in whole numbers]:

	Number of shares			Stated value
Awarded and not released, December 31, 2009		1,371,978		$	45
Release of restricted stock		(189,242	)		(5	)
Awarded and not released, December 31, 2010		1,182,736			40
Release of restricted stock		(156,432	)		(5	)
Awarded and not released, December 31, 2011		1,026,304			35
Release of restricted stock		(143,316	)		(5	)
Awarded and not released, December 31, 2012		882,988		$	30

Schedule of restricted stock unit programs outstanding

The following is a continuity schedule of restricted stock unit programs outstanding [number of stock units in the table below are expressed in whole numbers]:

	Equity classified RSUs			Liability classified RSUs			Liability classified DSUs			Total
Outstanding at December 31, 2009		184,084			12,272			153,013			349,369
Granted		20,940			26,000			40,954			87,894
Dividend equivalents		946			391			1,758			3,095
Redeemed		(24,238	)		(4,421	)		(9,377	)		(38,036	)
Outstanding at December 31, 2010		181,732			34,242			186,348			402,322
Granted		208,458			4,150			22,669			235,277
Dividend equivalents		2,022			946			4,696			7,664
Redeemed		(24,486	)		(9,532	)		(15,267	)		(49,285	)
Outstanding at December 31, 2011		367,726			29,806			198,446			595,978
Granted		320,131			15,364			37,456			372,951
Dividend equivalents		1,895			1,133			5,145			8,173
Redeemed		(84,322	)		(26,204	)		(34,124	)		(144,650	)
Outstanding at December 31, 2012		605,430			20,099			206,923			832,452

Summary of Stock-based compensation expense recorded in selling, general and administrative expenses

Stock-based compensation expense recorded in selling, general and administrative expenses related to the above programs is as follows:

	2012		2011			2010
Incentive Stock Option Plan [i]	$	19	$	21		$	43
Long-term retention		5		7			9
Restricted stock unit		14		6			1
		38		34			53
Fair value adjustment for liability classified DSUs		4		(3	)		4
Incentive Stock Option Plan	$	42	$	31		$	57

[i] During 2010, option agreements with three departing executives were modified resulting in a one-time charge to compensation expense of $20 million. These charges represent the fair value of the options at the date of modification net of originally measured compensation cost which was reversed.

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ACCOUNTING STANDARDS

12 Months Ended

Dec. 31, 2012

ACCOUNTING STANDARDS

2. ACCOUNTING STANDARDS

Comprehensive Income

During 2011, the Financial Accounting Standards Board [“FASB”] issued Accounting Standards Update [“ASU”] 2011-05 and ASU 2011-12, “Comprehensive Income (Topic 220)”, requiring entities to present net income and other comprehensive income in either a single continuous statement or in two consecutive statements of net income and other comprehensive income. The adoption of this ASU did not have a material impact on the consolidated financial statements.

Fair Value Measurement

During 2011, the FASB issued ASU 2011-04, “Fair Value Measurement (Topic 820)”, clarifying the existing measurement and disclosure requirements and expanding the disclosure requirements for certain fair value measurements. The adoption of this ASU did not have a material impact on the consolidated financial statements.

Goodwill

In September 2011, the FASB issued ASU 2011-08, “Intangibles – Goodwill and Other (Topic 350): Testing Goodwill for Impairment”. ASU 2011-08 provides an option to perform a qualitative assessment to determine whether further goodwill impairment testing is necessary. If, as a result of the qualitative assessment, it is determined that it is more-likely-than-not that a reporting unit’s fair value is less than its carrying amount, the two-step quantitative impairment test is required. Otherwise, no further testing is required. ASU 2011-08 is effective for the Company for the year ended December 31, 2012. The adoption of this ASU did not have a material impact on the consolidated financial statements.

Future Accounting Standards

Intangibles

In July 2012, the FASB issued ASU 2012-02, “Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment”. ASU 2012-02 provides an option to first perform a qualitative assessment to determine whether it is more-likely-than-not that an indefinite-lived intangible asset is impaired. This new standard will be effective for the Company in the first quarter of 2013. The adoption of this ASU is not expected to have a material impact on the consolidated financial statements.

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Segmented Information - Share of E-Car Partnership (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Segment Reporting Information [Line Items]
Total sales	$ 30,837	$ 28,748	$ 23,465
Equity loss	151	121	132
Adjusted EBIT	1,750	1,217	1,197
North America [Member]
Segment Reporting Information [Line Items]
Total sales	16,335	14,855	12,370
Adjusted EBIT	1,521	1,373	1,116
Europe [Member]
Segment Reporting Information [Line Items]
Total sales	12,709	12,556	10,289
Adjusted EBIT	165	(22)	117
Segment Corporate and Other [Member]
Segment Reporting Information [Line Items]
Total sales	(318)	(262)	(210)
Adjusted EBIT	0	(40)	(94)
Reportable Segment [Member]
Segment Reporting Information [Line Items]
Total sales	30,837	28,748	23,465
Adjusted EBIT	1,658	1,367	1,211
E-Car [Member]
Segment Reporting Information [Line Items]
Total sales	91	92	20
E-Car [Member] | North America [Member]
Segment Reporting Information [Line Items]
Total sales	12	0	0
Equity loss	0	0	0
Amortization of intangibles	52	0	0
Adjusted EBIT	(76)	0	0
E-Car [Member] | Europe [Member]
Segment Reporting Information [Line Items]
Total sales	12	0	0
Equity loss	0	0	0
Amortization of intangibles	0	0	0
Adjusted EBIT	(6)	0	0
E-Car [Member] | Segment Corporate and Other [Member]
Segment Reporting Information [Line Items]
Total sales	0	0	8
Equity loss	35	66	30
Amortization of intangibles	0	0	0
Adjusted EBIT	(35)	(66)	(80)
E-Car [Member] | Reportable Segment [Member]
Segment Reporting Information [Line Items]
Total sales	24	0	8
Equity loss	35	66	30
Amortization of intangibles	52	0	0
Adjusted EBIT	$ (117)	$ (66)	$ (80)

XML

Inventories - Inventories (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Inventories [Line Items]
Raw materials and supplies	$ 911	$ 800
Work-in-process	260	229
Finished goods	283	253
Tooling and engineering	1,058	763
Inventory, net, total	$ 2,512	$ 2,045

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WARRANTY (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Company's warranty accruals

The following is a continuity of the Company’s warranty accruals:

	2012			2011			2010
Balance, beginning of year	$	76		$	68		$	75
Expense, net		43			46			32
Settlements		(46	)		(38	)		(37	)
Acquisitions [note 6]		17			—			—
Foreign exchange and other		4			—			(2	)
	$	94		$	76		$	68

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CONTINGENCIES

12 Months Ended

Dec. 31, 2012

CONTINGENCIES

22. CONTINGENCIES

[a] In the ordinary course of business activities, the Company may be contingently liable for litigation and claims with customers, suppliers, former employees and other parties. In addition, the Company may be, or could become, liable to incur environmental remediation costs to bring environmental contamination levels back within acceptable legal limits. On an ongoing basis, the Company assesses the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of probable costs and losses.

A determination of the provision required, if any, for these contingencies is made after analysis of each individual issue. The required provision may change in the future due to new developments in each matter or changes in approach such as a change in settlement strategy in dealing with these matters.

In November 1997, the Company and two of its subsidiaries were sued by KS Centoco Ltd., an Ontario-based steering wheel manufacturer in which the Company has a 23% equity interest, and by Centoco Holdings Limited, the owner of the remaining 77% equity interest in KS Centoco Ltd. In March 1999, the plaintiffs were granted leave to make substantial amendments to the original statement of claim in order to add several new defendants and claim additional remedies, and in February 2006, the plaintiffs further amended their claim to add an additional remedy. The amended statement of claim alleges, among other things:

• breach of fiduciary duty by the Company and two of its subsidiaries;

• breach by the Company of its binding letter of intent with KS Centoco Ltd., including its covenant not to have any interest, directly or indirectly, in any entity that carries on the airbag business in North America, other than through MST Automotive Inc., a company to be 77% owned by Magna and 23% owned by Centoco Holdings Limited;

• the plaintiff’s exclusive entitlement to certain airbag technologies in North America pursuant to an exclusive licence agreement, together with an accounting of all revenues and profits resulting from the alleged use by the Company, TRW Inc. [“TRW”] and other unrelated third party automotive supplier defendants of such technology in North America;

• a conspiracy by the Company, TRW and others to deprive KS Centoco Ltd. of the benefits of such airbag technology in North America and to cause Centoco Holdings Limited to sell to TRW its interest in KS Centoco Ltd. in conjunction with the Company’s sale to TRW of its interest in MST Automotive GmbH and TEMIC Bayern-Chemie Airbag GmbH; and

• oppression by the defendants.

The plaintiffs are seeking, amongst other things, damages of approximately Cdn$3.5 billion. Document production, completion of undertakings and examinations for discovery are substantially complete, although limited additional examinations for discovery may occur. A trial is not expected to commence until late 2014, at the earliest. The Company believes it has valid defences to the plaintiffs’ claims and therefore intends to continue to vigorously defend this case. At this time, notwithstanding the amount of time which has transpired since the claim was filed, these legal proceedings remain at an early stage and, accordingly, it is not possible to predict their outcome.

[b] During the fourth quarter of 2011, the Company announced that it was cooperating with the United States Department of Justice [“DOJ”] with respect to an antitrust investigation of the automobile tooling industry. The scope of the DOJ inquiry subsequently changed to include tooling quotation and program management practices. The DOJ’s investigation has since been concluded without any action being taken by the DOJ.

[c] A putative class action lawsuit alleging violations of the United States Securities Exchange Act of 1934 has been filed in the United States District Court, Southern District of New York, against the Company, as well as its Chief Executive Officer, Chief Financial Officer and Founder and Honorary Chairman. Boilermaker-Blacksmith National Pension Trust [“BBNPT”] was appointed the lead plaintiff on an uncontested motion. BBNPT subsequently filed an amended complaint, following which the defendants’ filed motion materials seeking dismissal of the lawsuit. The motion to dismiss is expected to be heard by the end of the second quarter of 2013. The defendants believe the lawsuit is without merit and therefore intend to vigorously defend the case. Given the early stages of the legal proceedings, it is not possible to predict the outcome of the claim.

[d] In certain circumstances, the Company is at risk for warranty costs including product liability and recall costs. Due to the nature of the costs, the Company makes its best estimate of the expected future costs [note 13]; however, the ultimate amount of such costs could be materially different. The Company continues to experience increased customer pressure to assume greater warranty responsibility. Currently, under most customer agreements, the Company only accounts for existing or probable claims. Under certain complete vehicle engineering and assembly contracts, the Company records an estimate of future warranty-related costs based on the terms of the specific customer agreements, and the specific customer’s warranty experience.

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TRANSACTIONS WITH RELATED PARTIES

12 Months Ended

Dec. 31, 2012

TRANSACTIONS WITH RELATED PARTIES

21. TRANSACTIONS WITH RELATED PARTIES

As more fully described in notes 3 and 6, on August 31, 2012, the Company acquired the controlling 27% interest in E-Car from a company affiliated with the Stronach Group for cash consideration of $75 million. The purchase was reviewed, negotiated and approved by the Company’s independent directors with the benefit of independent legal advice from Fasken Martineau DuMoulin LLP, independent financial advice from TD and an independent valuation prepared by PwC.

Mr. Frank Stronach, the Company’s Honorary Chairman, together with three other members of the Stronach family, are trustees and members of the class of potential beneficiaries of the Stronach Trust. The Stronach Trust indirectly controlled Magna until August 31, 2010, and MI Developments Inc. [“MID”] until June 30, 2011. In the normal course of business, Magna leases various land and buildings from MID under operating lease agreements, which are effected on normal commercial terms. The leases were measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties. Lease expense related to MID for 2011 was $166 million [2010 – $172 million]. In addition, the Company recorded sales and provided services to companies controlled by the Stronach Group of $12 million and $5 million, respectively [2011 – $36 million and $7 million].

The Company has agreements with Mr. Stronach and certain affiliated entities for the provision of business development, consulting and other business services. The cost of these agreements is measured at the exchange amount. The Arrangement set a termination date of December 31, 2014 with a declining fee schedule for the consulting, business development and business services agreements. The aggregate amount expensed under these agreements with respect to the year ended December 31, 2012 was $47 million [2011 – $38 million; 2010 – $41 million].

As more fully described in note 3, the Company sold properties to entities affiliated with Mr. Stronach and the Company’s former Co-Chief Executive Officer for an aggregate sale price of $43 million. These transactions were reviewed by the former Corporate Governance and Compensation Committee and approved by the Independent Directors following the unanimous recommendation of the former Corporate Governance and Compensation Committee.

During the year ended December 31, 2012, a trust, which exists to make orderly purchases of the Company’s shares for employees for transfer to the Employee Equity and Profit Participation Program, borrowed up to $18 million [2011 – $35 million; 2010 – $31 million] from the Company to facilitate the purchase of Common Shares. At December 31, 2012, the trust’s indebtedness to Magna was $17 million [2011 – $17 million].

The Company had sales to equity method investees which are further described in note 8.

XML

Stock-Based Compensation - Schedule of reduction in stated value of company's common shares (Detail) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, Awarded and not released, Beginning balance	1,026,304	1,182,736	1,371,978
Number of shares, Release of restricted stock	(143,316)	(156,432)	(189,242)
Number of shares, Awarded and not released, Ending balance	882,988	1,026,304	1,182,736
Stated value, Awarded and not released, Beginning balance	$ 35	$ 40	$ 45
Stated value, Release of restricted stock	(5)	(5)	(5)
Stated value, Awarded and not released, Ending balance	$ 30	$ 35	$ 40

XML

Earnings Per Share - Computation of Earnings per share (Parenthetical) (Detail) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Earnings Per Share [Line Items]
Common or Class B share exclude issuable of common shares	2.3	2.1	3.9

XML

DEBT AND COMMITMENTS (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Company's long-term debt

[a] The Company’s long-term debt, which is substantially uncollateralized, consists of the following:

	2012		2011
Bank term debt at a weighted average interest rate of approximately 8.0% [2011 - 9.4%], denominated primarily in Chinese renminbi and Brazilian real	$	268	$	137
Government loans at a weighted average interest rate of approximately 5.4% [2011 - 5.8%], denominated primarily in euros		15		18
Other		78		42
		361		197
Less due within one year		249		151
	$	112	$	46

Schedule of future principal repayments on long-term debt

[b] Future principal repayments on long-term debt are estimated to be as follows:

2013	$	249
2014		24
2015		31
2016		16
2017		16
Thereafter		25
	$	361

Interest (income) expense, net

[d] Interest expense (income), net includes:

	2012			2011			2010
Interest expense
Current	$	27		$	16		$	9
Long-term		7			3			2
		34			19			11
Interest income		(18	)		(25	)		(22	)
Interest expense (income), net	$	16		$	(6	)	$	(11	)

Company's commitments under operating leases and requiring annual rental payments

[f] At December 31, 2012, the Company had commitments under operating leases requiring annual rental payments as follows:

	Total
2013	$	318
2014		287
2015		256
2016		233
2017		204
Thereafter		336
	$	1,634

XML

SEGMENTED INFORMATION

12 Months Ended

Dec. 31, 2012

SEGMENTED INFORMATION

23. SEGMENTED INFORMATION

[a] Magna is a leading global automotive supplier with 313 manufacturing operations and 88 product development, engineering and sales centres in 29 countries. Magna’s 119,000 employees are focused on delivering superior value to customers through innovative processes and World Class Manufacturing. The Company’s capabilities include body, chassis, interiors, exteriors, seating, powertrain, electronics, mirrors, closures and roof systems and modules, as well as complete vehicle engineering and contract manufacturing.

Magna’s success is directly dependent upon the levels of North American and European [and currently to a lesser extent on Rest of World] car and light truck production by its customers. OEM production volumes in each of North America and Europe may be impacted by a number of geographic factors, including general economic conditions, interest rates, consumer credit availability, fuel prices and availability, infrastructure, legislative changes, environmental emission and safety issues, and labour and/or trade relations.

Given the differences between the regions in which the Company operates, Magna’s operations are segmented on a geographic basis between North America, Europe and Rest of World. The Company maintains management teams in each of the Company’s two primary markets, North America and Europe. The role of the North American and European management teams is to manage Magna’s interests to ensure a coordinated effort across the Company’s different product capabilities. In addition to maintaining key customer, supplier and government contacts in their respective markets, the regional management teams centrally manage key aspects of the Company’s operations while permitting the divisions enough flexibility through Magna’s decentralized structure to foster an entrepreneurial environment.

Consistent with the above, the Company’s internal financial reporting separately segments key internal operating performance measures between North America, Europe and Rest of World for purposes of presentation to the chief operating decision maker to assist in the assessment of operating performance, the allocation of resources, and the long-term strategic direction and future global growth in the Company.

The Company’s chief operating decision maker uses Adjusted EBIT as the measure of segment profit or loss, since management believes Adjusted EBIT is the most appropriate measure of operational profitability or loss for its reporting segments. Adjusted EBIT represents income from operations before income taxes; interest expense (income), net; and other (income) expense, net.

The accounting policies of each segment are the same as those set out under “Significant Accounting Policies” [note 1] and intersegment sales and transfers are accounted for at fair market value.

As more fully described in notes 3 and 6, on August 31, 2012 the Company acquired the controlling 27% interest in the E-Car partnership. From August 31, 2010 to August 31, 2012, the Company held a 73% non-controlling interest in E-Car and accounted for this investment using the equity method of accounting. Prior to the deconsolidation of E-Car on August 31, 2010, 100% of the results of E-Car were fully consolidated.

For segment reporting purposes, prior to August 31, 2012 the Company recorded its proportionate share of the losses of E-Car in the Corporate and Other segment. Beginning on August 31, 2012, the consolidated results of E-Car are recorded in the Company’s North America and Europe segments. The footnotes to the following tables provide information regarding amounts that are recorded in each operating segment related to E-Car.

The following tables show certain information with respect to segment disclosures:

	2012
	Total sales			External sales		Depreciation and amortization		Adjusted EBIT			Goodwill		Fixed asset additions		Fixed assets, net
North America
Canada	$	6,343		$	5,907								$	158	$	660
United States		7,518			7,053									294		973
Mexico		3,520			3,281									163		573
Eliminations		(1,046	)		—									—		—
North America		16,335			16,241	$	432	$	1,521		$	701		615		2,206
Europe
Western Europe (excluding Great Britain)		10,089			9,927									246		1,490
Great Britain		961			952									15		58
Eastern Europe		1,847			1,684									117		584
Eliminations		(188	)		—									—		—
Europe		12,709			12,563		283		165			611		378		2,132
Rest of World		2,111			2,010		59		(28	)		160		270		686
Corporate and Other [i]		(318	)		23		27		—			1		11		249
Total reportable segments		30,837			30,837		801		1,658			1,473		1,274		5,273
Other income, net									108
Interest expense, net									(16	)
	$	30,837		$	30,837	$	801	$	1,750		$	1,473	$	1,274	$	5,273
Current assets																9,135
Investments, goodwill, deferred tax assets and other assets																2,701
Consolidated total assets															$	17,109

Included in the table above are the following amounts related to Magna’s share of the E-Car Partnership:

	Total sales		Equity loss		Amortization of intangibles		Adjusted EBIT
North America	$	12	$	—	$	52	$	(76	)
Europe		12		—		—		(6	)
Corporate and Other		—		35		—		(35	)
Total reportable segments	$	24	$	35	$	52	$	(117	)

For the year ended December 31, 2012, E-Car had total sales of $91 million and total adjusted EBIT loss of $130 million.

	2011
	Total sales			External sales		Depreciation and amortization		Adjusted EBIT			Goodwill		Fixed asset additions		Fixed assets, net
North America
Canada	$	5,951		$	5,552								$	115	$	586
United States		7,025			6,514									281		804
Mexico		2,902			2,698									162		477
Eliminations		(1,023	)		—									—		—
North America		14,855			14,764	$	358	$	1,373		$	644		558		1,867
Europe
Western Europe (excluding Great Britain)		10,124			9,963									284		1,111
Great Britain		913			909									7		53
Eastern Europe		1,708			1,557									132		438
Eliminations		(189	)		—									—		—
Europe		12,556			12,429		259		(22	)		393		423		1,602
Rest of World		1,599			1,506		38		56			158		236		485
Corporate and Other [i]		(262	)		49		31		(40	)		1		19		282
Total reportable segments		28,748			28,748		686		1,367			1,196		1,236		4,236
Other expense, net									(156	)
Interest income, net									6
	$	28,748		$	28,748	$	686	$	1,217		$	1,196	$	1,236		4,236
Current assets																8,146
Investments, goodwill, deferred tax assets and other assets																2,297
Consolidated total assets															$	14,679

Included in the table above are the following amounts related to Magna’s share of the E-Car Partnership:

	Total sales		Equity loss		Amortization of intangibles		Adjusted EBIT
North America	$	—	$	—	$	—	$	—
Europe		—		—		—		—
Corporate and Other		—		66		—		(66	)
Total reportable segments	$	—	$	66	$	—	$	(66	)

For the year ended December 31, 2011, E-Car had total sales of $92 million and total adjusted EBIT loss of $91 million.

	2010
	Total sales			External sales		Depreciation and amortization		Adjusted EBIT			Goodwill		Fixed asset additions		Fixed assets, net
North America
Canada	$	5,122		$	4,777								$	126	$	638
United States		5,808			5,348									130		668
Mexico		2,346			2,189									49		371
Eliminations		(906	)		—									—		—
North America		12,370			12,314	$	358	$	1,116		$	651		305		1,677
Europe
Western Europe (excluding Great Britain)		8,349			8,190									189		1,109
Great Britain		813			813									5		58
Eastern Europe		1,256			1,165									119		351
Eliminations		(129	)		—									—		—
Europe		10,289			10,168		242		117			402		313		1,518
Rest of World		1,016			930		27		72			140		44		211
Corporate and Other [i]		(210	)		53		29		(94	)		1		84		336
Total reportable segments		23,465			23,465		656		1,211			1,194		746		3,742
Other expense, net									(25	)
Interest income, net									11
	$	23,465		$	23,465	$	656	$	1,197		$	1,194	$	746		3,742
Current assets																7,485
Investments, goodwill, deferred tax assets and other assets																2,447
Consolidated total assets															$	13,674

Included in the table above are the following amounts related to Magna’s share of the E-Car Partnership:

					Amortization
	Total sales		Equity loss		of intangibles		Adjusted EBIT
North America	$	—	$	—	$	—	$	—
Europe		—		—		—		—
Corporate and Other		8		30		—		(80	)
Total reportable segments	$	8	$	30	$	—	$	(80	)

For the year ended December 31, 2010, E-Car had total sales of $20 million and total adjusted EBIT loss of $89 million.

[i] Included in Corporate and Other Adjusted EBIT are intercompany fees charged to the automotive segments.

[b] The following table aggregates external revenues by customer as follows:

	2012		2011		2010
General Motors	$	5,704	$	6,202	$	4,731
Fiat / Chrysler Group		4,637		3,864		3,102
BMW		4,100		4,191		3,090
Ford Motor Company		3,848		3,549		3,371
Volkswagen		3,835		3,187		2,567
Daimler AG		3,367		2,793		2,354
Other		5,346		4,962		4,250
	$	30,837	$	28,748	$	23,465

[c] The following table summarizes external revenues generated by automotive products and services:

	2012		2011		2010
Exterior and interior systems	$	11,673	$	11,020	$	8,637
Body systems and chassis systems		7,123		6,056		4,801
Powertrain systems		3,825		3,667		3,064
Complete vehicle assembly		2,561		2,690		2,163
Tooling, engineering and other		2,317		2,065		2,005
Vision and electronic systems		2,132		2,066		1,756
Closure systems		1,206		1,184		1,039
	$	30,837	$	28,748	$	23,465

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COMPARATIVE FIGURES

12 Months Ended

Dec. 31, 2012

COMPARATIVE FIGURES

24. COMPARATIVE FIGURES

Certain of the comparative figures have been reclassified to conform to the current year’s method of presentation.

XML

SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2012

SIGNIFICANT ACCOUNTING POLICIES

1. SIGNIFICANT ACCOUNTING POLICIES

Magna International Inc. [collectively “Magna” or the “Company”] is a leading global automotive supplier with 313 manufacturing operations and 88 product development, engineering and sales centres in 29 countries. Magna’s 119,000 employees are focused on delivering superior value to customers through innovative processes and World Class Manufacturing. The Company’s capabilities include body, chassis, interiors, exteriors, seating, powertrain, electronics, mirrors, closures and roof systems and modules, as well as complete vehicle engineering and contract manufacturing.

The consolidated financial statements have been prepared in U.S. dollars following United States generally accepted accounting principles [“GAAP”].

Principles of consolidation

The consolidated financial statements include the accounts of Magna and its subsidiaries, some of which have a non-controlling interest.

Financial instruments

The Company classifies all of its financial assets and financial liabilities as held-for-trading, held-to-maturity investments, loans and receivables, available-for-sale financial assets, or other financial liabilities. Held-for-trading financial instruments, which include cash and cash equivalents and the Company’s investment in asset-backed commercial paper [“ABCP”] are measured at fair value and all gains and losses are included in net income in the period in which they arise. Held-to-maturity investments, which include long-term interest bearing government securities held to partially fund certain Austrian lump sum termination and long service payment arrangements, are recorded at amortized cost using the effective interest method. Loans and receivables, which include accounts receivable, long-term receivables and accounts payable, are recorded at amortized cost using the effective interest method. Available-for-sale financial instruments are recorded at cost and are subsequently measured at fair value with all revaluation gains and losses included in other comprehensive income.

Foreign currency translation

The Company operates globally, which gives rise to a risk that its earnings and cash flows may be adversely impacted by fluctuations in foreign exchange rates.

Assets and liabilities of the Company’s operations having a functional currency other than the U.S. dollar are translated into U.S. dollars using the exchange rate in effect at year end, and revenues and expenses are translated at the average rate during the year. Exchange gains or losses on translation of the Company’s net investment in these operations are included in comprehensive income and are deferred in accumulated other comprehensive income. Foreign exchange gains or losses on debt that was designated as a hedge of the Company’s net investment in these operations are also recorded in accumulated other comprehensive income.

Foreign exchange gains and losses on transactions occurring in a currency other than an operation’s functional currency are reflected in income, except for gains and losses on foreign exchange contracts used to hedge specific future commitments in foreign currencies and on intercompany balances which are designated as long-term investments. In particular, the Company uses foreign exchange forward contracts for the sole purpose of hedging certain of the Company’s future committed foreign currency based outflows and inflows. All derivative instruments, including foreign exchange contracts, are recorded on the consolidated balance sheet at fair value. The fair values of derivatives are recorded in prepaid expenses, other assets, other accrued liabilities or other long-term liabilities. To the extent that cash flow hedges are effective, the change in their fair value is recorded in other comprehensive income; any ineffective portion is recorded in net income. Amounts accumulated in other comprehensive income are reclassified to net income in the period in which the hedged item affects net income.

If the Company’s foreign exchange forward contracts cease to be effective as hedges, for example, if projected foreign cash inflows or outflows declined significantly, gains or losses pertaining to the portion of the hedging transactions in excess of projected foreign currency denominated cash flows would be recognized in income at the time this condition was identified.

Cash and cash equivalents

Cash and cash equivalents include cash on account, demand deposits and short-term investments with remaining maturities of less than three months at acquisition.

Inventories

Production inventories and tooling inventories manufactured in-house are valued at the lower of cost and market, with cost being determined substantially on a first-in, first-out basis. Cost includes the cost of materials plus direct labour applied to the product and the applicable share of manufacturing overhead.

Outsourced tooling inventories are valued at the lower of subcontracted costs and market.

Investments

The Company accounts for its investments in which it has significant influence on the equity basis. Investments also include the Company’s investment in ABCP, public company shares and long-term interest bearing government securities held to partially fund certain Austrian lump sum termination and long service payment arrangements pursuant to local tax laws.

Long-lived assets

Fixed assets are recorded at historical cost. Depreciation is provided on a straight-line basis over the estimated useful lives of fixed assets at annual rates of 2 ¹/₂% to 5% for buildings, 7% to 10% for general purpose equipment and 10% to 33% for special purpose equipment.

Definite-lived intangible assets, which have arisen principally through acquisitions, are amortized on a straight-line basis over their estimated useful lives, typically over periods not exceeding five years.

The Company assesses fixed and other long-lived assets [excluding goodwill] for recoverability whenever indicators of impairment exist. If the carrying value of the asset exceeds the estimated undiscounted cash flows from the use of the asset, then an impairment loss is recognized to write the asset down to fair value. The fair value of the long-lived assets is generally determined using estimated discounted future cash flows.

Goodwill

Goodwill represents the excess of the cost of an acquired enterprise over the fair value of the identifiable assets acquired and liabilities assumed less any subsequent writedowns for impairment. Goodwill is reviewed for impairment on an annual basis. Goodwill impairment is evaluated between annual tests upon the occurrence of certain events or circumstances. Goodwill impairment is assessed based on a comparison of the fair value of a reporting unit to the underlying carrying value of the reporting unit’s net assets, including goodwill. When the carrying amount of the reporting unit exceeds its fair value, the fair value of the reporting unit’s goodwill is compared with its carrying amount to measure the amount of impairment, if any. The fair value of a reporting unit is generally determined using the estimated discounted future cash flows of the reporting unit.

Other assets

Other assets include the long-term portion of certain receivables, which represent the recognized sales value of tooling and design and engineering services provided to customers under certain long-term contracts. The receivables will be paid in full upon completion of the contracts or in instalments based on forecasted production volumes. In the event that actual production volumes are less than those forecasted, a reimbursement for any shortfall will be made.

Preproduction costs related to long-term supply agreements

Pre-operating costs incurred in establishing new facilities that require substantial time to reach commercial production capability are expensed as incurred.

Costs incurred [net of customer subsidies] related to design and engineering, which are paid for as part of subsequent production piece price amounts, are expensed as incurred unless a contractual guarantee for reimbursement exists.

Costs incurred [net of customer subsidies] related to design and development costs for moulds, dies and other tools that the Company does not own [and that will be used in, and paid for as part of the piece price amount for, subsequent production] are expensed as incurred unless the supply agreement provides a contractual guarantee for reimbursement or the non-cancellable right to use the moulds, dies and other tools during the supply agreement.

Where these preproduction costs are deemed to be a single unit of account combined with a subsequent parts production, the costs deferred in the above circumstances are included in other assets and amortized on a units-of-production basis to cost of goods sold over the anticipated term of the supply agreement.

Warranty

The Company records product warranty liabilities based on its individual customer agreements. Under most customer agreements, the Company only accounts for existing or probable claims on product default issues when amounts related to such issues are probable and reasonably estimable. Under certain complete vehicle engineering and assembly contracts, the Company records an estimate of future warranty-related costs based on the terms of the specific customer agreements and the specific customer’s warranty experience.

Product liability provisions are established based on the Company’s best estimate of the amounts necessary to settle existing claims on product default issues. Recall costs are costs incurred when government regulators and/or the customer decides to recall a product due to a known or suspected performance issue, and the Company is required to participate, either voluntarily or involuntarily. Costs typically include the cost of the product being replaced, the customer’s cost of the recall and labour to remove and replace the defective part. When a decision to recall a product has been made or is probable, the Company’s portion of the estimated cost of the recall is recorded as a charge to income in that period. In making this estimate, judgment is required as to the number of units that may be returned as a result of the recall, the total cost of the recall campaign and the ultimate negotiated sharing of the cost between the Company, the customer and, in some cases, a supplier to the Company.

Employee future benefit plans

The cost of providing benefits through defined benefit pensions, lump sum termination and long service payment arrangements, and post-retirement benefits other than pensions is actuarially determined and recognized in income using the projected benefit method pro-rated on service and management’s best estimate of expected plan investment performance, salary escalation, retirement ages of employees and, with respect to medical benefits, expected health care costs. Differences arising from plan amendments, changes in assumptions and experience gains and losses that are greater than 10% of the greater of the accrued benefit obligation at the beginning of the year and the fair value, or market related value, of plan assets at the beginning of the year, are recognized in income over the expected average remaining service life of employees. Gains related to plan curtailments are recognized when the event giving rise to the curtailment has occurred. Plan assets are valued at fair value. The cost of providing benefits through defined contribution pension plans is charged to income in the period in respect of which contributions become payable.

The aggregated underfunded plans are recognized as either a current liability or a non-current liability. The current liability is the amount by which the actuarial present value of benefits included in the benefit obligation in the next 12 months exceeds the fair value of the plan assets, determined on a plan-by-plan basis.

Asset retirement obligation

The Company recognizes its obligation to restore leased premises at the end of the lease by recording at lease inception the estimated fair value of this obligation as other long-term liabilities with a corresponding amount recognized as fixed assets. The fixed asset amount is amortized over the period from lease inception to the time the Company expects to vacate the premises, resulting in both depreciation and interest charges. The estimated fair value of the obligation is assessed for changes in the expected timing and extent of expenditures with changes related to the time value of money recorded as interest expense.

Revenue recognition

Revenue from the sale of manufactured products is recognized when the price is fixed or determinable, collectability is reasonably assured and upon shipment to [or receipt by customers, depending on contractual terms], and acceptance by customers.

For revenue arrangements entered into prior to January 1, 2011, tooling and engineering services are accounted for as a separate revenue element only in circumstances where the tooling and engineering has value to the customer on a standalone basis and there is objective and reliable evidence of the fair value of the subsequent parts production or vehicle assembly. For revenue arrangements entered into or materially modified on or after January 1, 2011, tooling and engineering services are accounted for as a separate revenue element only in circumstances where the tooling and engineering has value to the customer on a standalone basis. Revenues from significant engineering services and tooling contracts that qualify as separate revenue elements are recognized on a percentage-of-completion basis. Percentage-of-completion is generally determined based on the proportion of accumulated expenditures to date as compared to total anticipated expenditures.

Revenue and cost of goods sold, including amounts from engineering and tooling contracts, are presented on a gross basis in the consolidated statements of income and comprehensive income when the Company is acting as principal and is subject to significant risks and rewards in connection with the process of bringing the product to its final state and in the post-sale dealings with its customers. Otherwise, components of revenues and related costs are presented on a net basis. With respect to vehicle assembly sales, where Magna is acting as principal with respect to purchased components and systems, the selling price to the customer includes the costs of such inputs. These programs are accounted for on a full-cost basis under which sales and cost of goods sold include these input costs. Where third-party components and systems are held on consignment by the Company, the selling price to the customer reflects a value-added assembly fee only and, accordingly, the costs of such consignment inputs are not included in sales and cost of goods sold.

Government financing

The Company makes periodic applications for financial assistance under available government assistance programs in the various jurisdictions that the Company operates. Grants relating to capital expenditures are reflected as a reduction of the cost of the related assets. Grants relating to current operating expenditures are generally recorded as a reduction of the related expense at the time the eligible expenses are incurred. The Company also receives tax credits and tax super allowances, the benefits of which are recorded as a reduction of income tax expense. In addition, the Company receives loans which are recorded as liabilities in amounts equal to the cash received.

Income taxes

The Company uses the liability method of tax allocation to account for income taxes. Under the liability method of tax allocation, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.

No deferred tax liability is recorded for taxes on undistributed earnings and translation adjustments of foreign subsidiaries. These items are either considered to be reinvested for the foreseeable future or if they are available for repatriation, are not subject to further tax on remittance in the current circumstances. Taxes will be recorded on such foreign undistributed earnings and translation adjustments when it becomes apparent that such earnings will be distributed in the foreseeable future and the Company will incur further significant tax on remittance.

Recognition of uncertain tax positions is dependent on whether it is more-likely-than-not that a tax position taken or expected to be taken in a tax return will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If a tax position meets the more-likely-than-not recognition threshold, it is measured to determine the amount of benefit to recognize in the financial statements. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense.

Stock-based compensation

Compensation expense is recognized for stock options based upon the fair value of the options at the grant or modification date. The fair value of the options is recognized over the vesting period of the options as compensation expense in selling, general and administrative expense with a corresponding increase to contributed surplus.

The fair value of stock options is estimated at the grant or modification date using the Black-Scholes option pricing model. This model requires the input of a number of assumptions, including expected dividend yields, expected stock price volatility, expected time until exercise and risk-free interest rates. Although the assumptions used reflect management’s best estimates, they involve inherent uncertainties based on market conditions generally outside the Company’s control. If other assumptions are used, stock-based compensation expense could be significantly impacted.

As stock options are exercised, the proceeds received on exercise, in addition to the portion of the contributed surplus balance related to those stock options, is credited to Common Shares and contributed surplus is reduced accordingly.

The Company’s restricted stock plans and restricted share unit plans are measured at fair value at the date of grant or modification and amortized to compensation expense from the effective date of the grant to the final vesting date in selling, general and administrative expense with a corresponding increase to contributed surplus. As restricted stock or restricted share units are released under the plans, the portion of the contributed surplus balance relating to the restricted stock or restricted share units is credited to Common Shares and released from contributed surplus.

Comprehensive income

Other comprehensive income includes unrealized gains and losses on translation of the Company’s net investment in self-sustaining foreign operations, the change in fair value of available-for-sale investments net of taxes, change in unamortized actuarial amounts, net of taxes and to the extent that cash flow hedges are effective, the change in their fair value, net of income taxes.

Accumulated other comprehensive income is a separate component of shareholders’ equity which includes the accumulated balances of all components of other comprehensive income which are recognized in comprehensive income but excluded from net income.

Earnings per Common Share or Class B Share

Basic earnings per Common Share or Class B Share are calculated on net income attributable to Magna International Inc. using the weighted average number of Common Shares and Class B Shares outstanding during the year.

Diluted earnings per Common Share or Class B Share are calculated on the weighted average number of Common Shares and Class B Shares outstanding, including an adjustment for stock options outstanding using the treasury stock method.

Common Shares that have not been released under the Company’s restricted stock plan or are being held in trust for purposes of the Company’s restricted stock unit program have been excluded from the calculation of basic earnings per share but have been included in the calculation of diluted earnings per share.

Use of estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2012

Principles of consolidation

Principles of consolidation

The consolidated financial statements include the accounts of Magna and its subsidiaries, some of which have a non-controlling interest.

Financial instruments

Financial instruments

The Company classifies all of its financial assets and financial liabilities as held-for-trading, held-to-maturity investments, loans and receivables, available-for-sale financial assets, or other financial liabilities. Held-for-trading financial instruments, which include cash and cash equivalents and the Company’s investment in asset-backed commercial paper [“ABCP”] are measured at fair value and all gains and losses are included in net income in the period in which they arise. Held-to-maturity investments, which include long-term interest bearing government securities held to partially fund certain Austrian lump sum termination and long service payment arrangements, are recorded at amortized cost using the effective interest method. Loans and receivables, which include accounts receivable, long-term receivables and accounts payable, are recorded at amortized cost using the effective interest method. Available-for-sale financial instruments are recorded at cost and are subsequently measured at fair value with all revaluation gains and losses included in other comprehensive income.

Foreign currency translation

Foreign currency translation

The Company operates globally, which gives rise to a risk that its earnings and cash flows may be adversely impacted by fluctuations in foreign exchange rates.

Assets and liabilities of the Company’s operations having a functional currency other than the U.S. dollar are translated into U.S. dollars using the exchange rate in effect at year end, and revenues and expenses are translated at the average rate during the year. Exchange gains or losses on translation of the Company’s net investment in these operations are included in comprehensive income and are deferred in accumulated other comprehensive income. Foreign exchange gains or losses on debt that was designated as a hedge of the Company’s net investment in these operations are also recorded in accumulated other comprehensive income.

Foreign exchange gains and losses on transactions occurring in a currency other than an operation’s functional currency are reflected in income, except for gains and losses on foreign exchange contracts used to hedge specific future commitments in foreign currencies and on intercompany balances which are designated as long-term investments. In particular, the Company uses foreign exchange forward contracts for the sole purpose of hedging certain of the Company’s future committed foreign currency based outflows and inflows. All derivative instruments, including foreign exchange contracts, are recorded on the consolidated balance sheet at fair value. The fair values of derivatives are recorded in prepaid expenses, other assets, other accrued liabilities or other long-term liabilities. To the extent that cash flow hedges are effective, the change in their fair value is recorded in other comprehensive income; any ineffective portion is recorded in net income. Amounts accumulated in other comprehensive income are reclassified to net income in the period in which the hedged item affects net income.

If the Company’s foreign exchange forward contracts cease to be effective as hedges, for example, if projected foreign cash inflows or outflows declined significantly, gains or losses pertaining to the portion of the hedging transactions in excess of projected foreign currency denominated cash flows would be recognized in income at the time this condition was identified.

Cash and cash equivalents

Cash and cash equivalents

Cash and cash equivalents include cash on account, demand deposits and short-term investments with remaining maturities of less than three months at acquisition.

Inventories

Inventories

Production inventories and tooling inventories manufactured in-house are valued at the lower of cost and market, with cost being determined substantially on a first-in, first-out basis. Cost includes the cost of materials plus direct labour applied to the product and the applicable share of manufacturing overhead.

Outsourced tooling inventories are valued at the lower of subcontracted costs and market.

Investments

Investments

The Company accounts for its investments in which it has significant influence on the equity basis. Investments also include the Company’s investment in ABCP, public company shares and long-term interest bearing government securities held to partially fund certain Austrian lump sum termination and long service payment arrangements pursuant to local tax laws.

Long-lived assets

Long-lived assets

Fixed assets are recorded at historical cost. Depreciation is provided on a straight-line basis over the estimated useful lives of fixed assets at annual rates of 2 ¹/₂% to 5% for buildings, 7% to 10% for general purpose equipment and 10% to 33% for special purpose equipment.

Definite-lived intangible assets, which have arisen principally through acquisitions, are amortized on a straight-line basis over their estimated useful lives, typically over periods not exceeding five years.

The Company assesses fixed and other long-lived assets [excluding goodwill] for recoverability whenever indicators of impairment exist. If the carrying value of the asset exceeds the estimated undiscounted cash flows from the use of the asset, then an impairment loss is recognized to write the asset down to fair value. The fair value of the long-lived assets is generally determined using estimated discounted future cash flows.

Goodwill

Goodwill

Goodwill represents the excess of the cost of an acquired enterprise over the fair value of the identifiable assets acquired and liabilities assumed less any subsequent writedowns for impairment. Goodwill is reviewed for impairment on an annual basis. Goodwill impairment is evaluated between annual tests upon the occurrence of certain events or circumstances. Goodwill impairment is assessed based on a comparison of the fair value of a reporting unit to the underlying carrying value of the reporting unit’s net assets, including goodwill. When the carrying amount of the reporting unit exceeds its fair value, the fair value of the reporting unit’s goodwill is compared with its carrying amount to measure the amount of impairment, if any. The fair value of a reporting unit is generally determined using the estimated discounted future cash flows of the reporting unit.

Other assets

Other assets

Other assets include the long-term portion of certain receivables, which represent the recognized sales value of tooling and design and engineering services provided to customers under certain long-term contracts. The receivables will be paid in full upon completion of the contracts or in instalments based on forecasted production volumes. In the event that actual production volumes are less than those forecasted, a reimbursement for any shortfall will be made.

Preproduction costs related to long-term supply agreements

Preproduction costs related to long-term supply agreements

Pre-operating costs incurred in establishing new facilities that require substantial time to reach commercial production capability are expensed as incurred.

Costs incurred [net of customer subsidies] related to design and engineering, which are paid for as part of subsequent production piece price amounts, are expensed as incurred unless a contractual guarantee for reimbursement exists.

Costs incurred [net of customer subsidies] related to design and development costs for moulds, dies and other tools that the Company does not own [and that will be used in, and paid for as part of the piece price amount for, subsequent production] are expensed as incurred unless the supply agreement provides a contractual guarantee for reimbursement or the non-cancellable right to use the moulds, dies and other tools during the supply agreement.

Where these preproduction costs are deemed to be a single unit of account combined with a subsequent parts production, the costs deferred in the above circumstances are included in other assets and amortized on a units-of-production basis to cost of goods sold over the anticipated term of the supply agreement.

Warranty

Warranty

The Company records product warranty liabilities based on its individual customer agreements. Under most customer agreements, the Company only accounts for existing or probable claims on product default issues when amounts related to such issues are probable and reasonably estimable. Under certain complete vehicle engineering and assembly contracts, the Company records an estimate of future warranty-related costs based on the terms of the specific customer agreements and the specific customer’s warranty experience.

Product liability provisions are established based on the Company’s best estimate of the amounts necessary to settle existing claims on product default issues. Recall costs are costs incurred when government regulators and/or the customer decides to recall a product due to a known or suspected performance issue, and the Company is required to participate, either voluntarily or involuntarily. Costs typically include the cost of the product being replaced, the customer’s cost of the recall and labour to remove and replace the defective part. When a decision to recall a product has been made or is probable, the Company’s portion of the estimated cost of the recall is recorded as a charge to income in that period. In making this estimate, judgment is required as to the number of units that may be returned as a result of the recall, the total cost of the recall campaign and the ultimate negotiated sharing of the cost between the Company, the customer and, in some cases, a supplier to the Company.

Employee future benefit plans

Employee future benefit plans

The cost of providing benefits through defined benefit pensions, lump sum termination and long service payment arrangements, and post-retirement benefits other than pensions is actuarially determined and recognized in income using the projected benefit method pro-rated on service and management’s best estimate of expected plan investment performance, salary escalation, retirement ages of employees and, with respect to medical benefits, expected health care costs. Differences arising from plan amendments, changes in assumptions and experience gains and losses that are greater than 10% of the greater of the accrued benefit obligation at the beginning of the year and the fair value, or market related value, of plan assets at the beginning of the year, are recognized in income over the expected average remaining service life of employees. Gains related to plan curtailments are recognized when the event giving rise to the curtailment has occurred. Plan assets are valued at fair value. The cost of providing benefits through defined contribution pension plans is charged to income in the period in respect of which contributions become payable.

The aggregated underfunded plans are recognized as either a current liability or a non-current liability. The current liability is the amount by which the actuarial present value of benefits included in the benefit obligation in the next 12 months exceeds the fair value of the plan assets, determined on a plan-by-plan basis.

Asset retirement obligation

Asset retirement obligation

The Company recognizes its obligation to restore leased premises at the end of the lease by recording at lease inception the estimated fair value of this obligation as other long-term liabilities with a corresponding amount recognized as fixed assets. The fixed asset amount is amortized over the period from lease inception to the time the Company expects to vacate the premises, resulting in both depreciation and interest charges. The estimated fair value of the obligation is assessed for changes in the expected timing and extent of expenditures with changes related to the time value of money recorded as interest expense.

Revenue recognition

Revenue recognition

Revenue from the sale of manufactured products is recognized when the price is fixed or determinable, collectability is reasonably assured and upon shipment to [or receipt by customers, depending on contractual terms], and acceptance by customers.

For revenue arrangements entered into prior to January 1, 2011, tooling and engineering services are accounted for as a separate revenue element only in circumstances where the tooling and engineering has value to the customer on a standalone basis and there is objective and reliable evidence of the fair value of the subsequent parts production or vehicle assembly. For revenue arrangements entered into or materially modified on or after January 1, 2011, tooling and engineering services are accounted for as a separate revenue element only in circumstances where the tooling and engineering has value to the customer on a standalone basis. Revenues from significant engineering services and tooling contracts that qualify as separate revenue elements are recognized on a percentage-of-completion basis. Percentage-of-completion is generally determined based on the proportion of accumulated expenditures to date as compared to total anticipated expenditures.

Revenue and cost of goods sold, including amounts from engineering and tooling contracts, are presented on a gross basis in the consolidated statements of income and comprehensive income when the Company is acting as principal and is subject to significant risks and rewards in connection with the process of bringing the product to its final state and in the post-sale dealings with its customers. Otherwise, components of revenues and related costs are presented on a net basis. With respect to vehicle assembly sales, where Magna is acting as principal with respect to purchased components and systems, the selling price to the customer includes the costs of such inputs. These programs are accounted for on a full-cost basis under which sales and cost of goods sold include these input costs. Where third-party components and systems are held on consignment by the Company, the selling price to the customer reflects a value-added assembly fee only and, accordingly, the costs of such consignment inputs are not included in sales and cost of goods sold.

Government financing

Government financing

The Company makes periodic applications for financial assistance under available government assistance programs in the various jurisdictions that the Company operates. Grants relating to capital expenditures are reflected as a reduction of the cost of the related assets. Grants relating to current operating expenditures are generally recorded as a reduction of the related expense at the time the eligible expenses are incurred. The Company also receives tax credits and tax super allowances, the benefits of which are recorded as a reduction of income tax expense. In addition, the Company receives loans which are recorded as liabilities in amounts equal to the cash received.

Income taxes

Income taxes

The Company uses the liability method of tax allocation to account for income taxes. Under the liability method of tax allocation, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.

No deferred tax liability is recorded for taxes on undistributed earnings and translation adjustments of foreign subsidiaries. These items are either considered to be reinvested for the foreseeable future or if they are available for repatriation, are not subject to further tax on remittance in the current circumstances. Taxes will be recorded on such foreign undistributed earnings and translation adjustments when it becomes apparent that such earnings will be distributed in the foreseeable future and the Company will incur further significant tax on remittance.

Recognition of uncertain tax positions is dependent on whether it is more-likely-than-not that a tax position taken or expected to be taken in a tax return will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If a tax position meets the more-likely-than-not recognition threshold, it is measured to determine the amount of benefit to recognize in the financial statements. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense.

Stock-based compensation

Stock-based compensation

Compensation expense is recognized for stock options based upon the fair value of the options at the grant or modification date. The fair value of the options is recognized over the vesting period of the options as compensation expense in selling, general and administrative expense with a corresponding increase to contributed surplus.

The fair value of stock options is estimated at the grant or modification date using the Black-Scholes option pricing model. This model requires the input of a number of assumptions, including expected dividend yields, expected stock price volatility, expected time until exercise and risk-free interest rates. Although the assumptions used reflect management’s best estimates, they involve inherent uncertainties based on market conditions generally outside the Company’s control. If other assumptions are used, stock-based compensation expense could be significantly impacted.

As stock options are exercised, the proceeds received on exercise, in addition to the portion of the contributed surplus balance related to those stock options, is credited to Common Shares and contributed surplus is reduced accordingly.

The Company’s restricted stock plans and restricted share unit plans are measured at fair value at the date of grant or modification and amortized to compensation expense from the effective date of the grant to the final vesting date in selling, general and administrative expense with a corresponding increase to contributed surplus. As restricted stock or restricted share units are released under the plans, the portion of the contributed surplus balance relating to the restricted stock or restricted share units is credited to Common Shares and released from contributed surplus.

Comprehensive income

Comprehensive income

Other comprehensive income includes unrealized gains and losses on translation of the Company’s net investment in self-sustaining foreign operations, the change in fair value of available-for-sale investments net of taxes, change in unamortized actuarial amounts, net of taxes and to the extent that cash flow hedges are effective, the change in their fair value, net of income taxes.

Accumulated other comprehensive income is a separate component of shareholders’ equity which includes the accumulated balances of all components of other comprehensive income which are recognized in comprehensive income but excluded from net income.

Earnings per Common Share or Class B Share

Earnings per Common Share or Class B Share

Basic earnings per Common Share or Class B Share are calculated on net income attributable to Magna International Inc. using the weighted average number of Common Shares and Class B Shares outstanding during the year.

Diluted earnings per Common Share or Class B Share are calculated on the weighted average number of Common Shares and Class B Shares outstanding, including an adjustment for stock options outstanding using the treasury stock method.

Common Shares that have not been released under the Company’s restricted stock plan or are being held in trust for purposes of the Company’s restricted stock unit program have been excluded from the calculation of basic earnings per share but have been included in the calculation of diluted earnings per share.

Use of estimates

Use of estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

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Debt And Commitments - Interest (Income) Expense, Net (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Interest expense
Current	$ 27	$ 16	$ 9
Long-term	7	3	2
Interest Expense, Total	34	19	11
Interest income	(18)	(25)	(22)
Interest expense (income), net	$ 16	$ (6)	$ (11)

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Segmented Information - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2012 Center Operations Markets Employee Country	Aug. 31, 2012
Segment Reporting Information [Line Items]
Number of manufacturing operations	313
Number of product development, engineering and sales centres	88
Number of countries in which entity operates	29
Number of employees	119,000
Number of primary markets	2
Interest acquired in E-Car partnership		27.00%
E-Car [Member]
Segment Reporting Information [Line Items]
Interest acquired in E-Car partnership		27.00%
Percentage of non-controlling interest in an equity accounted investment	73.00%

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GOODWILL (Tables)

12 Months Ended

Dec. 31, 2012

Goodwill by segment

The following is a continuity of the Company’s goodwill by segment:

	North America			Europe			Rest of World			Total
Balance, December 31, 2010	$	651		$	402		$	141		$	1,194
Acquisitions [note 6]		2			2			25			29
Foreign exchange and other		(9	)		(12	)		(6	)		(27	)
Balance, December 31, 2011		644			392			160			1,196
Acquisitions [note 6]		75			206			8			289
Foreign exchange and other		(18	)		13			(7	)		(12	)
Balance, December 31, 2012	$	701		$	611		$	161		$	1,473

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Other (Income) Expense, Net - Other (Income) Expense, Net (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended			3 Months Ended	12 Months Ended	3 Months Ended		12 Months Ended			3 Months Ended				12 Months Ended			1 Months Ended	3 Months Ended		12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Mar. 31, 2010 Rest Of World [Member]	Dec. 31, 2010 Rest Of World [Member]	Dec. 31, 2011 North America [Member]	Dec. 31, 2010 North America [Member]	Dec. 31, 2012 North America [Member]	Dec. 31, 2011 North America [Member]	Dec. 31, 2010 North America [Member]	Dec. 31, 2012 Europe [Member]	Dec. 31, 2011 Europe [Member]	Sep. 30, 2011 Europe [Member]	Dec. 31, 2010 Europe [Member]	Dec. 31, 2012 Europe [Member]	Dec. 31, 2011 Europe [Member]	Dec. 31, 2010 Europe [Member]	Aug. 31, 2010 Corporate [Member]	Sep. 30, 2012 Corporate [Member]	Jun. 30, 2011 Corporate [Member]	Dec. 31, 2012 Corporate [Member]	Dec. 31, 2011 Corporate [Member]	Dec. 31, 2010 Corporate [Member]
Component of Operating Other Cost and Expense [Line Items]
Impairment of long-lived assets						$ 7	$ 7	$ 2	$ 7	$ 7	$ 23	$ 14		$ 16	$ 23	$ 14	$ 16
Re-measurement gain of E-Car	(188)							(35)											(153)		(153)
Settlement agreement									11
Insurance proceeds									(15)
Restructuring charges										32	55				55
Total								(33)	3	39					78	154	16				(153)	(1)	(16)
Loss (gain) on disposal of facility				(14)	(14)							129	113			129
Customer bankruptcy												11				11
Write down of real estate																						9
Gain on sale of investment																				10		(10)
Gain on deconsolidation of E-Car																		16					(16)
Other (income) expense, net	$ (108)	$ 156	$ 25

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Income Taxes - Details of Income Tax Provision (Recovery) (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Taxes [Line Items]
Canadian	$ 170	$ 115	$ 73
Foreign	200	163	138
Current income tax, Total	370	278	211
Canadian	(6)	7	11
Foreign	(40)	(83)	(28)
Deferred income tax, Total	(46)	(76)	(17)
Income tax provision, Total	$ 324	$ 202	$ 194

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Consolidated Statements of Income (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Sales	$ 30,837	$ 28,748	$ 23,465
Costs and expenses
Cost of goods sold	27,010	25,434	20,483
Depreciation and amortization	801	686	656
Selling, general and administrative	1,519	1,382	1,247
Interest expense (income), net	16	(6)	(11)
Equity income	(151)	(121)	(132)
Other (income) expense, net	(108)	156	25
Income from operations before income taxes	1,750	1,217	1,197
Income taxes	324	202	194
Net income	1,426	1,015	1,003
Net loss attributable to non-controlling interests	7	3
Net income attributable to Magna International Inc.	$ 1,433	$ 1,018	$ 1,003
Earnings per Common Share or Class B Share:
Basic	$ 6.17	$ 4.26	$ 4.36
Diluted	$ 6.09	$ 4.20	$ 4.30
Cash dividends paid per Common Share or Class B Share	$ 1.10	$ 1.00	$ 0.42
Average number of Common Shares and Class B Shares outstanding during the year [in millions]:
Basic	232.4	239.3	230.0
Diluted	235.2	242.8	233.0

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LONG-TERM EMPLOYEE BENEFIT LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2012

Long-term employee benefit liabilities

Long-term employee benefit liabilities consist of:

	2012		2011		2010
Defined benefit pension plans and other [a]	$	230	$	143	$	97
Termination and long service arrangements [b]		286		229		212
Retirement medical benefits plans [c]		39		37		34
Other long-term employee benefits		5		10		13
Long-term employee benefit obligations	$	560	$	419	$	356

Schedule of Company's defined benefit pension plan

Information about the Company’s defined benefit pension plans is as follows:

	2012			2011			2010
Projected benefit obligation
Beginning of year	$	403		$	352		$	330
Current service cost		12			11			11
Interest cost		19			19			18
Actuarial losses (gains) and changes in actuarial assumptions		50			42			(5	)
Benefits paid		(19	)		(14	)		(17	)
Special termination benefit		—			1			8
Acquisition		49			—			5
Divestitures		—			(3	)		—
Currency translation		6			(5	)		2
End of year		520			403			352
Plan assets at fair value
Beginning of year		259			253			218
Return on plan assets		26			—			25
Employer contributions		19			24			21
Benefits paid		(19	)		(14	)		(15	)
Currency translation		3			(4	)		4
End of year		288			259			253
Ending funded status	$	232		$	144		$	99

	2012			2011			2010
Amounts recorded in the consolidated balance sheet
Non-current asset	$	—		$	(1	)	$	—
Current liability		2			2			2
Non-current liability		230			143			97
Net amount	$	232		$	144		$	99
Amounts recorded in accumulated other comprehensive income
Unrecognized actuarial losses	$	(142	)	$	(101	)	$	(42	)
Net periodic benefit cost
Current service cost	$	12		$	11		$	11
Interest cost		19			19			18
Return on plan assets		(19	)		(19	)		(17	)
Actuarial losses		3			1			2
Special termination benefit		—			1			8
Net periodic benefit cost	$	15		$	13		$	22

Future benefit payments

[d] Future benefit payments

	Defined benefit pension plans		Termination and long service arrangements		Retirement medical benefits plans		Total
Expected employer contributions - 2013	$	30	$	10	$	2	$	42
Expected benefit payments:
2013	$	17	$	10	$	2	$	29
2014		15		10		2		27
2015		16		11		2		29
2016		16		12		3		31
2017		17		13		3		33
Thereafter		93		95		12		200
	$	174	$	151	$	24	$	349

Asset allocation of defined benefit pension plans

The asset allocation of the Company’s defined benefit pension plans at December 31, 2012 and 2011, and the target allocation for 2013 is as follows:

	2013			2012			2011
Equity securities		55-75	%		57	%		60	%
Fixed income securities		25-45	%		42	%		39	%
Cash and cash equivalents		0-15	%		1	%		1	%
		100	%		100	%		100	%

Pension Plans, Defined Benefit [Member]

Summary of weighted average significant actuarial assumptions adopted in measuring Company's obligations and cost

The weighted average significant actuarial assumptions adopted in measuring the Company’s obligations and costs are as follows:

	2012			2011			2010
Projected benefit obligation
Discount rate		4.1	%		4.7	%		5.5	%
Rate of compensation increase		2.8	%		2.8	%		2.6	%
Net periodic benefit cost
Discount rate		4.7	%		5.2	%		5.9	%
Rate of compensation increase		2.8	%		2.7	%		3.5	%
Expected return on plan assets		7.0	%		7.1	%		7.7	%

Termination And Long Service Arrangements [Member]

Summary of weighted average significant actuarial assumptions adopted in measuring Company's obligations and cost

The weighted average significant actuarial assumptions adopted in measuring the Company’s projected termination and long service benefit obligations and net periodic benefit cost are as follows:

	2012			2011			2010
Discount rate		4.2	%		5.4	%		4.9	%
Rate of compensation increase		3.9	%		4.0	%		3.9	%

Schedule of Company's defined benefit pension plan

Information about the Company’s termination and long service arrangements is as follows:

	2012			2011			2010
Projected benefit obligation
Beginning of year	$	237		$	220		$	190
Current service cost		15			14			13
Interest cost		12			10			11
Actuarial losses and changes in actuarial assumptions		41			14			33
Benefits paid		(12	)		(11	)		(12	)
Curtailment		(4	)		—			—
Divestitures		—			—			(3	)
Currency translation		7			(10	)		(12	)
Ending funded status	$	296		$	237		$	220
Amounts recorded in the consolidated balance sheet
Current liability	$	10		$	8		$	8
Non-current liability		286			229			212
Net amount	$	296		$	237		$	220
Amounts recorded in accumulated other comprehensive income
Unrecognized actuarial losses	$	(73	)	$	(45	)	$	(41	)
Net periodic benefit cost
Current service cost	$	15		$	14		$	13
Interest cost		12			10			11
Actuarial losses		12			6			5
Net periodic benefit cost	$	39		$	30		$	29

Retirement Medical Benefits Plans [Member]

Summary of weighted average significant actuarial assumptions adopted in measuring Company's obligations and cost

The weighted average discount rates used in measuring the Company’s projected retirement medical benefit obligations and net periodic benefit cost are as follows:

	2012			2011			2010
Retirement medical benefit obligations		3.6	%		4.2	%		5.4	%
Net periodic benefit cost		4.2	%		5.4	%		5.7	%
Health care cost inflation		8.0	%		9.2	%		9.2	%

Schedule of Company's defined benefit pension plan

Information about the Company’s retirement medical benefits plans are as follows:

	2012			2011			2010
Projected benefit obligation
Beginning of year	$	39		$	36		$	36
Interest cost		2			2			2
Actuarial losses and changes in actuarial assumptions		3			4			1
Benefits paid		(3	)		(3	)		(3	)
Ending funded status	$	41		$	39		$	36
Amounts recorded in the consolidated balance sheet
Current liability	$	2		$	2		$	2
Non-current liability		39			37			34
Net amount	$	41		$	39		$	36
Amounts recorded in accumulated other comprehensive income
Unrecognized past service costs	$	3		$	3		$	4
Unrecognized actuarial gains		8			12			18
Total accumulated other comprehensive income	$	11		$	15		$	22
Net periodic benefit cost
Interest cost	$	2		$	2		$	2
Actuarial gains		(1	)		(1	)		(1	)
Past service cost amortization		—			(1	)		—
Net periodic benefit cost	$	1		$	—		$	1

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Stock-Based Compensation - Schedule of Options Outstanding (Detail) (CAD)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options outstanding, beginning balance	6,867,367	11,142,450	7,150,544
Number of options, Granted	1,389,000		6,341,000
Number of options, Exercised	(1,525,159)	(2,737,253)	(1,504,616)
Number of options, Cancelled	(107,966)	(1,537,830)	(844,478)
Number of options, Vested
Number of options outstanding, ending balance	6,623,242	6,867,367	11,142,450
Weighted average exercise price outstanding, Beginning balance	31.54	34.22	34.26
Weighted average exercise price, Granted	48.22		34.04
Weighted average exercise price, Exercised	28.46	33.28	34.31
Weighted average exercise price, Cancelled	53.14	48.86	33.04
Weighted average exercise price, Vested
Weighted average exercise price outstanding, Ending Balance	35.39	31.54	34.22
Number of options exercisable outstanding, beginning balance	2,066,700	3,362,116	4,988,544
Number of options exercisable, Exercised	(1,525,159)	(2,737,253)	(1,504,616)
Number of options exercisable, Cancelled	(58,967)	(1,426,164)	(844,478)
Number of options exercisable, Vested	2,745,000	2,868,001	722,666
Number of options exercisable outstanding, Ending Balance	3,227,574	2,066,700	3,362,116

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Contingencies - Additional Information (Detail) (CAD) In Billions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012
Amount related to damages	3.5
KS Centoco Ltd [Member]
Number of subsidiaries sued by KS Centoco Ltd	2
Percentage of equity interest owned by company	23.00%
Percentage of equity interest owned by third party	77.00%
MST Automotive Inc [Member]
Percentage of equity interest owned by company	77.00%
Percentage of equity interest owned by third party	23.00%

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Consolidated Balance Sheets (Parenthetical)	Dec. 31, 2012	Dec. 31, 2011
Common stock, shares issued	233,155,783	233,317,792

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Other Long-Term Liabilities - Summary of Other Long-Term Liabilities (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Other Long Term Liabilities [Line Items]
Long-term portion of income taxes payable	$ 94	$ 119
Asset retirement obligation	39	36
Long-term portion of fair value of hedges	10	41
Deferred revenue	11	11
Total	$ 154	$ 207

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Details of Consolidated Statements of Cash Flows - Changes in Non-Cash Operating Assets and Liabilities (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Accounts receivable	$ (46)	$ (909)	$ (589)
Inventories	(315)	(282)	(164)
Prepaid expenses and other	36	(49)	(9)
Accounts payable	249	475	550
Accrued salaries and wages	37	80	93
Other accrued liabilities	97	87	65
Income taxes (payable) receivable	16	(29)	203
Deferred revenue	(2)	(4)	(3)
Changes in non-cash operating assets and liabilities	$ 72	$ (631)	$ 146

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Stock-Based Compensation - Fair Value of Stock Options Granted and Compensation Expenses (Detail) (CAD)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	2.23%		2.26%
Expected dividend yield	2.00%		2.00%
Expected volatility	43.00%		35.00%
Expected time until exercise	4 years 6 months		4 years
Weighted average fair value of options granted or modified in year [Cdn$]	15.37		10.00

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DETAILS OF CONSOLIDATED STATEMENTS OF CASH FLOWS (Tables)

12 Months Ended

Dec. 31, 2012

Components of Cash and cash Equivalents

[a] Cash and cash equivalents consist of:

	2012		2011
Bank term deposits, bankers’ acceptances and government paper	$	1,220	$	968
Cash		302		357
	$	1,522	$	1,325

Details of Items not involving current cash flows

[b] Items not involving current cash flows:

	2012			2011			2010
Depreciation and amortization	$	801		$	686		$	656
Other non-cash charges		154			110			148
Amortization of other assets included in cost of goods sold		113			80			67
Deferred income taxes [note 11]		(46	)		(76	)		(17	)
Equity income		(151	)		(121	)		(132	)
Non-cash portion of Other (income) expense, net [note 3]		(163	)		147			7
	$	708		$	826		$	729

Changes in non-cash operating assets and liabilities

[c] Changes in non-cash operating assets and liabilities:

	2012			2011			2010
Accounts receivable	$	(46	)	$	(909	)	$	(589	)
Inventories		(315	)		(282	)		(164	)
Prepaid expenses and other		36			(49	)		(9	)
Accounts payable		249			475			550
Accrued salaries and wages		37			80			93
Other accrued liabilities		97			87			65
Income taxes (payable) receivable		16			(29	)		203
Deferred revenue		(2	)		(4	)		(3	)
	$	72		$	(631	)	$	146

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Investments - Company's Combined Proportionate Share of Major Components of Financial Statements (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Schedule of Equity Method Investments [Line Items]
Current assets	$ 344	$ 389
Long-term assets	74	173
Current liabilities	150	203
Long-term liabilities	60	58
Sales	967	881	698
Cost of goods sold, expenses and income taxes	814	805	580
Net income	$ 153	$ 76	$ 118

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LONG-TERM EMPLOYEE BENEFIT LIABILITIES

12 Months Ended

Dec. 31, 2012

LONG-TERM EMPLOYEE BENEFIT LIABILITIES

15. LONG-TERM EMPLOYEE BENEFIT LIABILITIES

Long-term employee benefit liabilities consist of:

	2012		2011		2010
Defined benefit pension plans and other [a]	$	230	$	143	$	97
Termination and long service arrangements [b]		286		229		212
Retirement medical benefits plans [c]		39		37		34
Other long-term employee benefits		5		10		13
Long-term employee benefit obligations	$	560	$	419	$	356

[a] Defined benefit pension plans

The Company sponsors a number of defined benefit pension plans and similar arrangements for its employees. All pension plans are funded to at least the minimum legal funding requirements, while European defined benefit pension plans are unfunded.

The weighted average significant actuarial assumptions adopted in measuring the Company’s obligations and costs are as follows:

	2012			2011			2010
Projected benefit obligation
Discount rate		4.1	%		4.7	%		5.5	%
Rate of compensation increase		2.8	%		2.8	%		2.6	%
Net periodic benefit cost
Discount rate		4.7	%		5.2	%		5.9	%
Rate of compensation increase		2.8	%		2.7	%		3.5	%
Expected return on plan assets		7.0	%		7.1	%		7.7	%

Information about the Company’s defined benefit pension plans is as follows:

	2012			2011			2010
Projected benefit obligation
Beginning of year	$	403		$	352		$	330
Current service cost		12			11			11
Interest cost		19			19			18
Actuarial losses (gains) and changes in actuarial assumptions		50			42			(5	)
Benefits paid		(19	)		(14	)		(17	)
Special termination benefit		—			1			8
Acquisition		49			—			5
Divestitures		—			(3	)		—
Currency translation		6			(5	)		2
End of year		520			403			352
Plan assets at fair value
Beginning of year		259			253			218
Return on plan assets		26			—			25
Employer contributions		19			24			21
Benefits paid		(19	)		(14	)		(15	)
Currency translation		3			(4	)		4
End of year		288			259			253
Ending funded status	$	232		$	144		$	99

	2012			2011			2010
Amounts recorded in the consolidated balance sheet
Non-current asset	$	—		$	(1	)	$	—
Current liability		2			2			2
Non-current liability		230			143			97
Net amount	$	232		$	144		$	99
Amounts recorded in accumulated other comprehensive income
Unrecognized actuarial losses	$	(142	)	$	(101	)	$	(42	)
Net periodic benefit cost
Current service cost	$	12		$	11		$	11
Interest cost		19			19			18
Return on plan assets		(19	)		(19	)		(17	)
Actuarial losses		3			1			2
Special termination benefit		—			1			8
Net periodic benefit cost	$	15		$	13		$	22

[b] Termination and long service arrangements

Pursuant to labour laws and national labour agreements in certain European countries and Mexico, the Company is obligated to provide lump sum termination payments to employees on retirement or involuntary termination, and long service payments contingent upon persons reaching a predefined number of years of service.

The weighted average significant actuarial assumptions adopted in measuring the Company’s projected termination and long service benefit obligations and net periodic benefit cost are as follows:

	2012			2011			2010
Discount rate		4.2	%		5.4	%		4.9	%
Rate of compensation increase		3.9	%		4.0	%		3.9	%

Information about the Company’s termination and long service arrangements is as follows:

	2012			2011			2010
Projected benefit obligation
Beginning of year	$	237		$	220		$	190
Current service cost		15			14			13
Interest cost		12			10			11
Actuarial losses and changes in actuarial assumptions		41			14			33
Benefits paid		(12	)		(11	)		(12	)
Curtailment		(4	)		—			—
Divestitures		—			—			(3	)
Currency translation		7			(10	)		(12	)
Ending funded status	$	296		$	237		$	220
Amounts recorded in the consolidated balance sheet
Current liability	$	10		$	8		$	8
Non-current liability		286			229			212
Net amount	$	296		$	237		$	220
Amounts recorded in accumulated other comprehensive income
Unrecognized actuarial losses	$	(73	)	$	(45	)	$	(41	)
Net periodic benefit cost
Current service cost	$	15		$	14		$	13
Interest cost		12			10			11
Actuarial losses		12			6			5
Net periodic benefit cost	$	39		$	30		$	29

[c] Retirement medical benefits plans

The Company sponsors a number of retirement medical plans which were assumed on certain acquisitions in prior years. These plans are frozen to new employees and incur no current service costs.

In addition, the Company sponsors a retirement medical benefits plan that was amended during 2009 such that substantially all employees retiring on or after August 1, 2009 will no longer participate in the plan.

The weighted average discount rates used in measuring the Company’s projected retirement medical benefit obligations and net periodic benefit cost are as follows:

	2012			2011			2010
Retirement medical benefit obligations		3.6	%		4.2	%		5.4	%
Net periodic benefit cost		4.2	%		5.4	%		5.7	%
Health care cost inflation		8.0	%		9.2	%		9.2	%

Information about the Company’s retirement medical benefits plans are as follows:

	2012			2011			2010
Projected benefit obligation
Beginning of year	$	39		$	36		$	36
Interest cost		2			2			2
Actuarial losses and changes in actuarial assumptions		3			4			1
Benefits paid		(3	)		(3	)		(3	)
Ending funded status	$	41		$	39		$	36
Amounts recorded in the consolidated balance sheet
Current liability	$	2		$	2		$	2
Non-current liability		39			37			34
Net amount	$	41		$	39		$	36
Amounts recorded in accumulated other comprehensive income
Unrecognized past service costs	$	3		$	3		$	4
Unrecognized actuarial gains		8			12			18
Total accumulated other comprehensive income	$	11		$	15		$	22
Net periodic benefit cost
Interest cost	$	2		$	2		$	2
Actuarial gains		(1	)		(1	)		(1	)
Past service cost amortization		—			(1	)		—
Net periodic benefit cost	$	1		$	—		$	1

The effect of a one-percentage point increase or decrease in health care trend rates would not have a significant impact on the Company’s income.

[d] Future benefit payments

	Defined benefit pension plans		Termination and long service arrangements		Retirement medical benefits plans		Total
Expected employer contributions - 2013	$	30	$	10	$	2	$	42
Expected benefit payments:
2013	$	17	$	10	$	2	$	29
2014		15		10		2		27
2015		16		11		2		29
2016		16		12		3		31
2017		17		13		3		33
Thereafter		93		95		12		200
	$	174	$	151	$	24	$	349

[e] Plan assets

The asset allocation of the Company’s defined benefit pension plans at December 31, 2012 and 2011, and the target allocation for 2013 is as follows:

	2013			2012			2011
Equity securities		55-75	%		57	%		60	%
Fixed income securities		25-45	%		42	%		39	%
Cash and cash equivalents		0-15	%		1	%		1	%
		100	%		100	%		100	%

The expected rate of return on plan assets was determined by considering the Company’s current investment mix, the historic performance of these investment categories and expected future performance of these investment categories.

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BUSINESS ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2012

Preliminary Purchase Equation

The preliminary purchase equations for these acquisitions are as follows:

	BDW			E-Car			STT			ixetic			Other			Total
Cash	$	11		$	19		$	13		$	64		$	20		$	127
Non-cash working capital		(122	)		(48	)		9			54			(22	)		(129	)
Investments		—			—			—			3			—			3
Fixed assets		188			87			30			186			10			501
Goodwill, net		32			16			58			169			14			289
Other assets		17			9			—			68			—			94
Purchase intangibles		—			210			5			—			—			215
Long-term employee benefit liabilities		—			(2	)		—			(45	)		(2	)		(49	)
Long-term debt		(24	)		—			—			(1	)		—			(25	)
Other long-term liabilities		(35	)		—			—			—			—			(35	)
Deferred tax liabilities		(23	)		—			(5	)		(39	)		(1	)		(68	)
Non-controlling interests		—			(11	)		—			—			—			(11	)
Fair value of net assets		44			280			110			459			19			912
Less: Carrying value of Magna’s equity accounted investment		—			(52	)		(20	)		—			—			(72	)
Gain on re-measurement		—			(153	)		(35	)		—			—			(188	)
Consideration paid		44			75			55			459			19			652
Less: Cash acquired		(11	)		(19	)		(13	)		(64	)		(20	)		(127	)
Net cash outflow	$	33		$	56		$	42		$	395		$	(1	)	$	525

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Stock-Based Compensation - Summary of Characteristics of Options Outstanding (Detail) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012 USD ($)	Dec. 31, 2012 CAD	Dec. 31, 2012 Range One [Member] USD ($)	Dec. 31, 2012 Range Two [Member] USD ($)	Dec. 31, 2012 Range Three [Member] USD ($)	Dec. 31, 2012 Range Four [Member] USD ($)	Dec. 31, 2012 Range Five [Member] USD ($)	Dec. 31, 2012 Range Six [Member] USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price range lower limit			$ 15	$ 25	$ 35	$ 40	$ 45	$ 50
Exercise price range upper limit			$ 20	$ 30	$ 40	$ 45	$ 50	$ 55
Number of options	6,623,242	6,623,242	986,868	3,050,032	60,000	27,342	1,384,000	1,115,000
Remaining contractual life [years]	4 years 6 months 15 days	4 years 6 months 15 days	3 years 2 months 12 days	4 years 2 months 12 days	4 years	6 months	2 years 9 months 18 days	5 years
Number of options exercisable	3,227,574	3,227,574	986,868	1,400,032	60,000	27,342	10,000	743,332
Aggregate intrinsic value	$ 93
Weighted average exercise price of options		35.39
Weighted average life remaining [years]	4 years	4 years
Weighted average exercise price		30.93
Aggregate intrinsic value of options exercisable	$ 60

XML

STOCK-BASED COMPENSATION

12 Months Ended

Dec. 31, 2012

STOCK-BASED COMPENSATION

17. STOCK-BASED COMPENSATION

[a] Incentive Stock Option Plan

The Company currently has two incentive stock option plans in effect: [a] the 2009 Stock Option Plan, which was adopted by the Company’s shareholders on May 6, 2010; and [b] the Amended and Restated Incentive Stock Option Plan [the “1987 Stock Option Plan”], which was adopted by shareholders on December 10, 1987, and subsequently amended on May 18, 2000 and May 10, 2007.

Upon adoption of the 2009 Plan, new grants under the 1987 Plan were frozen, but all outstanding options were permitted to continue to vest and be exercisable in accordance with their terms.

2009 Stock Option Plan

Under the 2009 Stock Option Plan, the Company may grant options to purchase Common Shares to full-time employees and consultants of the Company and its subsidiaries. The maximum number of shares that can be reserved for issuance under the option plan is 16,000,000 shares. The number of shares available to be granted at December 31, 2012 was 8,457,666 [2011 – 9,770,666]. All options granted are for terms of up to seven years from the grant date. Options issued under the 2009 Option Plan to employees and consultants generally vest as to one-third on each of the first three anniversaries of the date of grant. Options issued to outside directors vest on the first anniversary of the date of grant. All options allow the holder to purchase Common Shares at a price equal to or greater than the closing market price of such shares on the date prior to the date of the grant.

1987 Stock Option Plan

The Company previously granted options to purchase Common Shares to full-time employees, outside directors or consultants of the Company under the 1987 Stock Option Plan. Upon shareholder approval of the Company’s 2009 Stock Option Plan, the 1987 Stock Option Plan was terminated such that no future grants could be made, but previously granted options would continue to vest and be exercisable in accordance with their original terms of grant. All options granted under the 1987 Stock Option Plan are for terms of up to seven years from the grant date, except for the options granted prior to December 2003, which were generally for terms of up to 10 years from the grant date. All options allow the holder to purchase Common Shares at a price equal to or greater than the closing market price of such shares on the date prior to the date of the grant or modification.

The following is a continuity schedule of options outstanding [number of options in the table below are expressed in whole numbers]:

	Options outstanding
	Number of options			Weighted average exercise price		Number of options exercisable
Outstanding at December 31, 2009		7,150,544		Cdn$	34.26		4,988,544
Granted		6,341,000			34.04		—
Exercised		(1,504,616	)		34.31		(1,504,616	)
Cancelled [i]		(844,478	)		33.04		(844,478	)
Vested		—			—		722,666
Outstanding at December 31, 2010		11,142,450		Cdn$	34.22		3,362,116
Exercised [ii]		(2,737,253	)		33.28		(2,737,253	)
Cancelled		(1,537,830	)		48.86		(1,426,164	)
Vested		—			—		2,868,001
Outstanding at December 31, 2011		6,867,367		Cdn$	31.54		2,066,700
Granted		1,389,000			48.22		—
Exercised [iii]		(1,525,159	)		28.46		(1,525,159	)
Cancelled		(107,966	)		53.14		(58,967	)
Vested		—			—		2,745,000
Outstanding at December 31, 2012		6,623,242		Cdn$	35.39		3,227,574

The total intrinsic value of options exercised during 2012 was $6 million [2011 - $19 million; 2010 - $14 million].

[i] On August 19, 2010, options to acquire 243,000 Common Shares were surrendered for cancellation in exchange for payment of the in-the-money value of such options on such date. The aggregate in-the-money value of the options surrendered was $4 million and was charged to contributed surplus.

On November 8, 2010, options to acquire 386,666 Common Shares were surrendered for cancellation in exchange for payment of the in-the-money value of such options on such date. The aggregate in-the-money value of the options surrendered was $8 million and was charged to contributed surplus.

[ii] On June 22, 2011, the Company’s Honorary Chairman and Founder, Mr. Stronach, exercised 1,083,333 options on a cashless basis in accordance with applicable stock option plans. On exercise, cash payments totalling $25 million were made to Mr. Stronach.

On July 13, 2011, 200,001 options were exercised on a cashless basis in accordance with applicable stock option plans. On exercise, cash payments totalling $5 million were made to the stock option holder.

[iii] On February 26, 2012, 200,000 options were exercised on a cashless basis in accordance with applicable stock option plans. On exercise, cash payments totalling $4 million were made to the stock option holder.

On August 16, 2012, Mr. Stronach exercised 900,001 options on a cashless basis in accordance with applicable stock option plans. On exercise, cash payments totalling $15 million were made to Mr. Stronach.

All cash payments were calculated using the difference between the aggregate fair market value of the Option Shares based on the closing price of the Company’s Common Shares on the Toronto Stock Exchange [“TSX”] on the date of exercise and the aggregate Exercise Price of all such options surrendered.

At December 31, 2012, the outstanding options consist of [number of options in the table below are expressed in whole numbers]:

	Options outstanding
	Number of options		Remaining contractual life [years]		Number of options exercisable
$15 to $20		986,868		3.2		986,868
$25 to $30		3,050,032		4.2		1,400,032
$35 to $40		60,000		4.0		60,000
$40 to $45		27,342		0.5		27,342
$45 to $50		1,384,000		2.8		10,000
$50 to $55		1,115,000		5.0		743,332
		6,623,242				3,227,574
Weighted average exercise price	Cdn$	35.39			Cdn$	30.93
Weighted average life remaining [years]		4.54				4.00
Aggregate intrinsic value at December 31, 2012	$	93			$	60

The weighted average assumptions used in measuring the fair value of stock options granted or modified are as follows:

	2012			2011		2010
Risk-free interest rate		2.23	%		—		2.26	%
Expected dividend yield		2.00	%		—		2.00	%
Expected volatility		43	%		—		35	%
Expected time until exercise		4.5 years			—		4 years
Weighted average fair value of options granted or modified in year [Cdn$]	$	15.37		$	—	$	10.00

[b] Long-term retention program

The Company awarded certain executives an entitlement to Common Shares in the form of restricted stock. Such shares become available to the executives, subject to acceleration on death or disability, after an approximate four-year holding period, provided certain conditions are met, and are to be released in equal amounts over a 10-year period, subject to forfeiture under certain circumstances. The stock that has not been released to the executives is reflected as a reduction in the stated value of the Company’s Common Shares.

The following is a continuity of the stock that has not been released to the executives and is reflected as a reduction in the stated value of the Company’s Common Shares [number of Common Shares in the table below are expressed in whole numbers]:

	Number of shares			Stated value
Awarded and not released, December 31, 2009		1,371,978		$	45
Release of restricted stock		(189,242	)		(5	)
Awarded and not released, December 31, 2010		1,182,736			40
Release of restricted stock		(156,432	)		(5	)
Awarded and not released, December 31, 2011		1,026,304			35
Release of restricted stock		(143,316	)		(5	)
Awarded and not released, December 31, 2012		882,988		$	30

[c] Restricted stock unit program

In a number of different circumstances, the Company awarded restricted stock units [“RSUs”] to certain executives and other employees as part of the Company’s compensation program. These RSUs are notional units, each of which is equivalent to one Magna Common Share. In most cases, the RSUs are redeemable solely at the Company’s option, either by delivery of the specified number of Common Shares or the cash value on the redemption date [based on the 20-day weighted average trading price]. Redemption of the RSUs generally occurs on December 15 of the second year after the date of grant, subject to earlier redemption or cancellation in specified circumstances. In some cases, RSUs are subject to vesting and other conditions and quarterly dividend equivalents are paid to the grantees.

The Company maintains a Non-Employee Director Share-Based Compensation Plan [“DSU”] which governs the portion of the annual retainer payable to Independent Directors which is deferred in the form of DSUs. Pursuant to a Board resolution effective January 1, 2008, 60% of the annual retainer for all of the Independent Directors is automatically payable in the form of DSUs. Additionally, each Independent Director may annually elect to defer up to 100% [in increments of 25%] of his or her total annual cash compensation from Magna [including Board and committee retainers, meeting attendance fees, work and travel day payments and written resolution fees]. The amounts deferred in the DSU Plan are reflected in DSUs allocated under the DSU Plan. These DSUs are notional units, the value of which reflects, and increases or decreases in direct relation to, the New York Stock Exchange [“NYSE”] market price of Magna Common Shares. Dividend equivalents are credited on DSUs at the times and in the amounts of dividends that are declared and paid on Magna’s Common Shares. All DSUs are fully vested on the date allocated to an Independent Director under the DSU Plan.

The following is a continuity schedule of restricted stock unit programs outstanding [number of stock units in the table below are expressed in whole numbers]:

	Equity classified RSUs			Liability classified RSUs			Liability classified DSUs			Total
Outstanding at December 31, 2009		184,084			12,272			153,013			349,369
Granted		20,940			26,000			40,954			87,894
Dividend equivalents		946			391			1,758			3,095
Redeemed		(24,238	)		(4,421	)		(9,377	)		(38,036	)
Outstanding at December 31, 2010		181,732			34,242			186,348			402,322
Granted		208,458			4,150			22,669			235,277
Dividend equivalents		2,022			946			4,696			7,664
Redeemed		(24,486	)		(9,532	)		(15,267	)		(49,285	)
Outstanding at December 31, 2011		367,726			29,806			198,446			595,978
Granted		320,131			15,364			37,456			372,951
Dividend equivalents		1,895			1,133			5,145			8,173
Redeemed		(84,322	)		(26,204	)		(34,124	)		(144,650	)
Outstanding at December 31, 2012		605,430			20,099			206,923			832,452

[d] Compensation expense related to stock-based compensation

Stock-based compensation expense recorded in selling, general and administrative expenses related to the above programs is as follows:

	2012		2011			2010
Incentive Stock Option Plan [i]	$	19	$	21		$	43
Long-term retention		5		7			9
Restricted stock unit		14		6			1
		38		34			53
Fair value adjustment for liability classified DSUs		4		(3	)		4
Incentive Stock Option Plan	$	42	$	31		$	57

[i] During 2010, option agreements with three departing executives were modified resulting in a one-time charge to compensation expense of $20 million. These charges represent the fair value of the options at the date of modification net of originally measured compensation cost which was reversed.

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Goodwill - Goodwill by Segment (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Goodwill [Line Items]
Goodwill, Beginning balance	$ 1,196	$ 1,194
Acquisitions	289	29
Foreign exchange and other	(12)	(27)
Goodwill, Ending balance	1,473	1,196
North America [Member]
Goodwill [Line Items]
Goodwill, Beginning balance	644	651
Acquisitions	75	2
Foreign exchange and other	(18)	(9)
Goodwill, Ending balance	701	644
Europe And Other [Member]
Goodwill [Line Items]
Goodwill, Beginning balance	392	402
Acquisitions	206	2
Foreign exchange and other	13	(12)
Goodwill, Ending balance	611	392
Rest Of World And Other [Member]
Goodwill [Line Items]
Goodwill, Beginning balance	160	141
Acquisitions	8	25
Foreign exchange and other	(7)	(6)
Goodwill, Ending balance	$ 161	$ 160

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Accumulated Other Comprehensive Income - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012
Amount of other comprehensive income is expected to be reclassified to net income during 2013	$ 18
Amount of other comprehensive income net of income tax during 2013	$ 7

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Consolidated Statements of Changes in Equity (USD $) In Millions, except Share data	Total	Release of restricted stock units [Member]	Common Shares [Member]	Common Shares [Member] Release of restricted stock units [Member]	Contributed Surplus [Member]	Contributed Surplus [Member] Release of restricted stock units [Member]	Retained Earnings [Member]	AOCI [Member]	Non-controlling Interest [Member]
Beginning Balance at Dec. 31, 2009	$ 7,299		$ 3,779		$ 32		$ 2,803	$ 685
Beginning Balance, shares at Dec. 31, 2009			223,900,000
Net income	1,003						1,003
Other comprehensive income (loss)	70							70
Contribution to subsidiaries by non-controlling interests	3								3
Shares issued on exercise of stock options	48		58		(10)
Shares issued on exercise of stock options, shares			1,500,000
Release of restricted stock	0		6		(6)
Repurchase and cancellation under normal course issuer bid [note 18]	(27)		(11)				(13)	(3)
Repurchase and cancellation under normal course issuer bid, shares [note 18]			(800,000)
Shares issued under the Arrangement [note 18]	666		666
Shares issued under the Arrangement, shares [note 18]			18,000,000
Repurchase of Class B Shares [note 18]	(976)						(976)
Stock-based compensation expense [note 17]	52				52
Settlement of stock options	(12)				(12)
Dividends paid	(100)		2				(102)
Ending Balance at Dec. 31, 2010	8,026		4,500		56		2,715	752	3
Ending Balance, shares at Dec. 31, 2010			242,600,000
Net income	1,015						1,018		(3)
Other comprehensive income (loss)	(289)							(289)
Contribution to subsidiaries by non-controlling interests	20								20
Acquisition of subsidiaries	7								7
Shares issued on exercise of stock options	59		69		(10)
Shares issued on exercise of stock options, shares			1,400,000
Release of restricted stock	0		6		(6)
Repurchase and cancellation under normal course issuer bid [note 18]	(407)		(204)				(162)	(41)
Repurchase and cancellation under normal course issuer bid, shares [note 18]			(10,700,000)
Stock-based compensation expense [note 17]	31				31
Settlement of stock options	(24)				(8)		(16)
Dividends paid	(236)		2				(238)
Ending Balance at Dec. 31, 2011	8,202		4,373		63		3,317	422	27
Ending Balance, shares at Dec. 31, 2011			233,300,000
Net income	1,426						1,433		(7)
Other comprehensive income (loss)	80							78	2
Acquisition of subsidiaries	7								7
Shares issued on exercise of stock options	14		19		(5)
Shares issued on exercise of stock options, shares			400,000
Release of restricted stock	0	0	5	5	(5)	(5)
Repurchase and cancellation under normal course issuer bid [note 18]	(42)		(18)				(20)	(4)
Repurchase and cancellation under normal course issuer bid, shares [note 18]			(800,000)
Stock-based compensation expense [note 17]	39				39
Settlement of stock options	(16)				(7)		(9)
Dividends paid	(252)		7				(259)
Dividends paid, shares			200,000
Ending Balance at Dec. 31, 2012	$ 9,458		$ 4,391		$ 80		$ 4,462	$ 496	$ 29
Ending Balance, shares at Dec. 31, 2012			233,100,000

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Consolidated Statements of Comprehensive Income (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Net income	$ 1,426	$ 1,015	$ 1,003
Other comprehensive income (loss), net of tax:
Net unrealized gain (loss) on translation of net investment in foreign operations	88	(171)	20
Net unrealized gain (loss) on cash flow hedges	75	(41)	80
Reclassification of net gain on cash flow hedges to net income	(18)	(22)	(27)
Reclassification of net loss on pensions to net income	11	3	4
Pension and post-retirement benefits	(72)	(52)	(18)
Net unrealized (loss) gain on available-for-sale investments	(4)	(6)	11
Other comprehensive income (loss)	80	(289)	70
Comprehensive income	1,506	726	1,073
Comprehensive loss attributable to non-controlling interests	5	3
Comprehensive income attributable to Magna International Inc.	$ 1,511	$ 729	$ 1,073

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GOODWILL

12 Months Ended

Dec. 31, 2012

GOODWILL

10. GOODWILL

The following is a continuity of the Company’s goodwill by segment:

	North America			Europe			Rest of World			Total
Balance, December 31, 2010	$	651		$	402		$	141		$	1,194
Acquisitions [note 6]		2			2			25			29
Foreign exchange and other		(9	)		(12	)		(6	)		(27	)
Balance, December 31, 2011		644			392			160			1,196
Acquisitions [note 6]		75			206			8			289
Foreign exchange and other		(18	)		13			(7	)		(12	)
Balance, December 31, 2012	$	701		$	611		$	161		$	1,473

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Common Shares - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	1 Months Ended	12 Months Ended
	Aug. 31, 2010	Dec. 31, 2012 Vote	Dec. 31, 2011	Dec. 31, 2010	Nov. 10, 2012	Nov. 10, 2011	Nov. 09, 2011	Nov. 11, 2010
Preference shares included in authorized Common Shares		99,760,000
Shares issued or outstanding		0
Number of votes per share		1
Number of common stock shares to be purchased under the Bid							12,000,000	8,000,000
Commencement date of Bid		November 13, 2012	November 11, 2011	November 11, 2010
Termination date of Bid		November 12, 2013	November 10, 2012	November 10, 2011
Number of Common Shares purchased under the Bid		427,402			3,668,430	8,000,000
Percentage of issued and outstanding common shares		5.20%	5.10%
Common Shares purchased for cancellation		895,032	10,747,300
Cash paid		$ 40	$ 407	$ 23
Cost for plan of arrangement	10
Stronach Group [Member]
Equity ownership and voting interest	7.40%
Class B Share Repurchase [Member]
Cash paid	300
Number of shares repurchased	1,453,658
Class A Subordinate Voting Share Issuance [Member]
Issuance of Class A Subordinate Voting Shares	$ 18.0

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Long-Term Employee Benefit Liabilities - Asset Allocation of Defined Benefit Pension Plans (Detail) (Pension Plans, Defined Benefit [Member])	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013 Subsequent [Member] Minimum [Member]	Dec. 31, 2013 Subsequent [Member] Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Equity securities	57.00%	60.00%	55.00%	75.00%
Fixed income securities	42.00%	39.00%	25.00%	45.00%
Cash and cash equivalents	1.00%	1.00%	0.00%	15.00%
Total	100.00%	100.00%		100.00%

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Long-Term Employee Benefit Liabilities - Company's Retirement Medical Benefits Plans (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Employee Benefit Plans [Line Items]
Non-current liability	$ 560	$ 419	$ 356
Retirement Medical Benefits Plans [Member]
Employee Benefit Plans [Line Items]
Beginning of year	39	36	36
Interest cost	2	2	2
Actuarial losses and changes in actuarial assumptions	3	4	1
Benefits paid	(3)	(3)	(3)
Ending funded status	41	39	36
Current liability	2	2	2
Non-current liability	39	37	34
Net amount	41	39	36
Unrecognized past service costs	3	3	4
Unrecognized actuarial gains	8	12	18
Total accumulated other comprehensive income	11	15	22
Interest cost	2	2	2
Actuarial gains	(1)	(1)	(1)
Past service cost amortization	0	(1)	0
Net periodic benefit cost	$ 1	$ 0	$ 1

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Segmented Information - Summary of External Revenues by Automotive Products and Services (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Segment Reporting Information [Line Items]
Revenue from external customers	$ 30,837	$ 28,748	$ 23,465
Exterior And Interior Systems [Member]
Segment Reporting Information [Line Items]
Revenue from external customers	11,673	11,020	8,637
Body Systems And Chassis Systems [Member]
Segment Reporting Information [Line Items]
Revenue from external customers	7,123	6,056	4,801
Powertrain Systems [Member]
Segment Reporting Information [Line Items]
Revenue from external customers	3,825	3,667	3,064
Complete Vehicle Assembly [Member]
Segment Reporting Information [Line Items]
Revenue from external customers	2,561	2,690	2,163
Tooling, engineering and other [Member]
Segment Reporting Information [Line Items]
Revenue from external customers	2,317	2,065	2,005
Vision And Electronic Systems [Member]
Segment Reporting Information [Line Items]
Revenue from external customers	2,132	2,066	1,756
Closure Systems [Member]
Segment Reporting Information [Line Items]
Revenue from external customers	$ 1,206	$ 1,184	$ 1,039

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Document and Entity Information	12 Months Ended
	Dec. 31, 2012
Entity Information [Line Items]
Document Type	40-F
Amendment Flag	false
Document Period End Date	Dec. 31, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY
Trading Symbol	MGA
Entity Registrant Name	MAGNA INTERNATIONAL INC
Entity Central Index Key	0000749098
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding	233,154,283

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INCOME TAXES

12 Months Ended

Dec. 31, 2012

INCOME TAXES

11. INCOME TAXES

[a] The provision for income taxes differs from the expense that would be obtained by applying the Canadian statutory income tax rate as a result of the following:

	2012			2011			2010
Canadian statutory income tax rate		26.5	%		28.3	%		31.0	%
Manufacturing and processing profits deduction		(0.7	)		(0.8	)		(0.6	)
Foreign rate differentials		(1.5	)		(2.0	)		(4.2	)
Losses not benefited		5.8			11.4			3.3
Utilization of losses previously not benefited		(0.3	)		(10.2	)		(9.4	)
Earnings of equity accounted investees		(1.2	)		(1.6	)		(2.2	)
Investment tax credits		(2.3	)		(1.6	)		(1.3	)
Valuation allowance on deferred tax assets [i]		(5.0	)		(6.5	)		(0.3	)
Re-measurement gains		(1.1	)		—			—
Other		(1.7	)		(0.4	)		(0.1	)
Effective income tax rate		18.5	%		16.6	%		16.2	%

[i] Accounting standards require that the Company assess whether valuation allowances should be established or maintained against its deferred tax assets, based on consideration of all available evidence, using a more-likely-than-not recognition threshold. The factors the Company uses to assess the likelihood of realization are its history of losses, forecasts of future pre-tax income and tax planning strategies that could be implemented to realize the deferred tax assets.

For the year ended December 31, 2012

The Company had valuation allowances against its deferred tax assets in the United Kingdom and Germany. These valuation allowances were required based on historical losses and uncertainty as to the timing of when the Company would be able to generate the necessary level of earnings to recover these deferred tax assets. Over the past few years, certain divisions in the United Kingdom have delivered sustained profits. Based on financial forecasts and continued anticipated growth, the Company released a portion of the valuation allowance set up against its deferred tax assets in the United Kingdom. The BDW and ixetic acquisitions in 2012 have allowed the Company to release a portion of the valuation allowance set up against its German deferred tax assets, during the fourth quarter of 2012. Additionally, during the fourth quarter of 2012, the Company has released a portion of its valuation allowances in Mexico and China, which were partially offset by a new valuation allowance against all of its deferred tax assets in Brazil. The net effect of all of these valuation allowance releases is $89 million.

For the year ended December 31, 2011

The Company had valuation allowances against all of its deferred tax assets in the United States. The U.S. valuation allowances were required based on historical losses and uncertainty as to the timing of when the Company would be able to generate the necessary level of earnings to recover these deferred tax assets. During 2010 and 2011, the Company’s United States operations delivered sustained profits. Based on financial forecasts and the continued anticipated growth for the U.S. market, the Company released $78 million of the U.S. valuation allowances in the fourth quarter of 2011. As at December 31, 2012, the Company has remaining U.S. valuation allowances of $94 million, relating to deferred tax assets with restrictions on their usability.

[b] The details of income before income taxes by jurisdiction are as follows:

	2012		2011		2010
Canadian	$	996	$	710	$	497
Foreign		754		507		700
	$	1,750	$	1,217	$	1,197

[c] The details of the income tax provision (recovery) are as follows:

	2012			2011			2010
Current
Canadian	$	170		$	115		$	73
Foreign		200			163			138
		370			278			211
Deferred
Canadian		(6	)		7			11
Foreign		(40	)		(83	)		(28	)
		(46	)		(76	)		(17	)
	$	324		$	202		$	194

[d] Deferred income taxes have been provided on temporary differences, which consist of the following:

	2012			2011			2010
Tax depreciation greater (less) than book depreciation	$	13		$	51		$	(13	)
Book amortization less than (in excess of) tax amortization		16			—			(20	)
Liabilities currently not deductible for tax		(29	)		(28	)		(27	)
Net tax losses (benefited) utilized		(11	)		(37	)		48
Change in valuation allowance on deferred tax assets		(89	)		(78	)		(3	)
Net tax credits utilized		53			24			—
Other		1			(8	)		(2	)
	$	(46	)	$	(76	)	$	(17	)

[e] Deferred tax assets and liabilities consist of the following temporary differences:

	2012			2011
Assets
Tax benefit of loss carryforwards	$	628		$	527
Liabilities currently not deductible for tax		263			219
Tax credit carryforwards		35			73
Unrealized loss on cash flow hedges and retirement liabilities		48			51
		974			870
Valuation allowance against tax benefit of loss carryforwards		(504	)		(454	)
Other valuation allowance		(45	)		(103	)
		425			313
Liabilities
Tax depreciation in excess of book depreciation		199			135
Other assets book value in excess of tax value		77			20
Unrealized gain on cash flow hedges and retirement liabilities		19			8
Other		30			—
		325			163
Net deferred tax assets	$	100		$	150

The net deferred tax assets are presented on the consolidated balance sheet in the following categories:

	2012			2011
Current deferred tax assets	$	170		$	206
Current deferred tax liabilities		(19	)		(44	)
Long-term deferred tax assets		90			69
Long-term deferred tax liabilities		(141	)		(81	)
	$	100		$	150

[f] Income taxes paid in cash (net of refunds) were $347 million for the year ended December 31, 2012 [2011 – $304 million; 2010 – $(6) million].

[g] As at December 31, 2012, the Company had domestic and foreign operating loss carryforwards of $2.08 billion and tax credit carryforwards of $35 million. Approximately $1.11 billion of the operating losses can be carried forward indefinitely. The remaining operating losses and tax credit carryforwards expire between 2013 and 2032.

[h] As at December 31, 2012 and 2011, the Company’s gross unrecognized tax benefits were $279 million and $252 million, respectively [excluding interest and penalties], of which $240 million and $222 million, respectively, if recognized, would affect the Company’s effective tax rate. The gross unrecognized tax benefits differ from the amount that would affect the Company’s effective tax rate due primarily to the impact of the valuation allowance on deferred tax assets. A summary of the changes in gross unrecognized tax benefits is as follows:

	2012			2011
Balance, beginning of year	$	252		$	257
Additions based on tax positions related to current year		68			14
(Reductions)/additions based on tax positions of prior years		(31	)		13
Settlements		(10	)		(12	)
Statute expirations		(5	)		(16	)
Foreign currency translation		5			(4	)
	$	279		$	252

The Company recognizes interest and penalties with respect to unrecognized tax benefits as income tax expense. As at December 31, 2012 and 2011, the Company has recorded interest and penalties, on the unrecognized tax benefits, of $49 million and $42 million, respectively. During the year ended December 31, 2012, the Company recorded a tax expense related to changes in its reserves for interest and penalties of $7 million.

The Company operates in multiple jurisdictions throughout the world, and its tax returns are periodically audited or subject to review by both domestic and foreign tax authorities. During the next twelve months, it is reasonably possible that, as a result of audit settlements, the conclusion of current examinations and the expiration of the statute of limitations in several jurisdictions, the Company may decrease the amount of its gross unrecognized tax benefits [including interest and penalties] by approximately $155 million, of which $140 million, if recognized, would affect its effective tax rate.

The Company considers its significant tax jurisdictions to include Canada, the United States, Austria, Germany and Mexico. The Company remains subject to income tax examination in Germany for years after 2002, Canada for years after 2004, Austria for years after 2005, Mexico for years after 2006, and in the U.S. federal jurisdiction for years after 2007.

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Debt And Commitments - Schedule of Company's Long-term Debt (Parenthetical) (Detail)	Dec. 31, 2012	Dec. 31, 2011
Bank Term Debt [Member]
Weighted average interest rate of bank term debt	8.00%	9.40%
Government Loans [Member]
Weighted average interest rate of bank term debt	5.40%	5.80%

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Long-Term Employee Benefit Liabilities - Summary of Weighted Average Discount Rates Used in Measuring Company's Projected Retirement Medical Benefit Obligations and Net Periodic Benefit Cost (Detail) (Retirement Medical Benefits Plans [Member])	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Retirement Medical Benefits Plans [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Retirement medical benefit obligations	3.60%	4.20%	5.40%
Net periodic benefit cost	4.20%	5.40%	5.70%
Health care cost inflation	8.00%	9.20%	9.20%

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Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
OPERATING ACTIVITIES
Net income	$ 1,426	$ 1,015	$ 1,003
Items not involving current cash flows	708	826	729
Profit loss after adjustment of non cash items	2,134	1,841	1,732
Changes in non-cash operating assets and liabilities	72	(631)	146
Cash provided from operating activities	2,206	1,210	1,878
INVESTMENT ACTIVITIES
Fixed asset additions	(1,274)	(1,236)	(746)
Purchase of subsidiaries	(525)	(120)	(106)
Increase in investments and other assets	(122)	(196)	(149)
Deconsolidation of E-Car			(91)
Disposal of facilities		112	30
Proceeds from disposition	106	168	244
Cash used for investment activities	(1,815)	(1,272)	(818)
FINANCING ACTIVITIES
Increase in bank indebtedness	42	38	12
Repayments of debt	(309)	(47)	(105)
Issues of debt	348	146	36
Issues of Common Shares	14	59	48
Settlement of stock options	(19)	(30)	(12)
Repurchase of Common Shares	(40)	(407)	(23)
Contribution to subsidiaries by non-controlling interests		20
Dividends paid	(252)	(236)	(100)
Cash used for financing activities	(216)	(457)	(444)
Effect of exchange rate changes on cash and cash equivalents	22	(37)	(5)
Net increase (decrease) in cash and cash equivalents during the year	197	(556)	611
Cash and cash equivalents, beginning of year	1,325	1,881	1,270
Cash and cash equivalents, end of year	1,522	1,325	1,881
Common Class B [Member]
FINANCING ACTIVITIES
Repurchase of Common Shares			$ (300)

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DETAILS OF CONSOLIDATED STATEMENTS OF CASH FLOWS

12 Months Ended

Dec. 31, 2012

DETAILS OF CONSOLIDATED STATEMENTS OF CASH FLOWS

5. DETAILS OF CONSOLIDATED STATEMENTS OF CASH FLOWS

[a] Cash and cash equivalents consist of:

	2012		2011
Bank term deposits, bankers’ acceptances and government paper	$	1,220	$	968
Cash		302		357
	$	1,522	$	1,325

[b] Items not involving current cash flows:

	2012			2011			2010
Depreciation and amortization	$	801		$	686		$	656
Other non-cash charges		154			110			148
Amortization of other assets included in cost of goods sold		113			80			67
Deferred income taxes [note 11]		(46	)		(76	)		(17	)
Equity income		(151	)		(121	)		(132	)
Non-cash portion of Other (income) expense, net [note 3]		(163	)		147			7
	$	708		$	826		$	729

[c] Changes in non-cash operating assets and liabilities:

	2012			2011			2010
Accounts receivable	$	(46	)	$	(909	)	$	(589	)
Inventories		(315	)		(282	)		(164	)
Prepaid expenses and other		36			(49	)		(9	)
Accounts payable		249			475			550
Accrued salaries and wages		37			80			93
Other accrued liabilities		97			87			65
Income taxes (payable) receivable		16			(29	)		203
Deferred revenue		(2	)		(4	)		(3	)
	$	72		$	(631	)	$	146

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EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2012

EARNINGS PER SHARE

4. EARNINGS PER SHARE

Earnings per share are computed as follows:

	2012		2011		2010
Basic earnings per Common or Class B Share:
Net income attributable to Magna International Inc.	$	1,433	$	1,018	$	1,003
Average number of Common and Class B Shares outstanding during the year		232.4		239.3		230.0
Basic earnings per Common or Class B Share	$	6.17	$	4.26	$	4.36
Diluted earnings per Common or Class B Share:
Net income attributable to Magna International Inc.	$	1,433	$	1,018	$	1,003
Average number of Common and Class B Shares outstanding during the year		232.4		239.3		230.0
Adjustments
Stock options and restricted stock [a]		2.8		3.5		3.0
		235.2		242.8		233.0
Diluted earnings per Common or Class B Share	$	6.09	$	4.20	$	4.30

[a] Diluted earnings per Common or Class B Share exclude 2.3 million [2011 – 2.1 million; 2010 – 3.9 million] Common Shares issuable under the Company’s Incentive Stock Option Plan because these options were not “in-the-money”.

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OTHER LONG-TERM LIABILITIES

12 Months Ended

Dec. 31, 2012

OTHER LONG-TERM LIABILITIES

16. OTHER LONG-TERM LIABILITIES

Other long-term liabilities consist of:

	2012		2011
Long-term portion of income taxes payable	$	94	$	119
Asset retirement obligation		39		36
Long-term portion of fair value of hedges [note 20]		10		41
Deferred revenue		11		11
	$	154	$	207

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OTHER ASSETS

12 Months Ended

Dec. 31, 2012

OTHER ASSETS

12. OTHER ASSETS

Other assets consist of:

	2012		2011
Preproduction costs related to long-term supply agreements with contractual guarantee for reimbursement	$	297	$	301
Long-term receivables [note 20]		95		176
Patents and licenses, net		34		30
Unrealized gain on cash flow hedges [note 20]		32		15
E-Car intangible [note 6]		158		—
Other, net [note 6]		137		72
	$	753	$	594

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Debt And Commitments - Company's Commitments under Operating Leases Requiring Annual Rental Payments (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012
2013	$ 318
2014	287
2015	256
2016	233
2017	204
Thereafter	336
Total	$ 1,634

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INVESTMENTS

12 Months Ended

Dec. 31, 2012

INVESTMENTS

8. INVESTMENTS

[a] At December 31, 2012, the Company held Canadian third party ABCP with a face value of Cdn$107 million [2011 – Cdn$125 million]. These investments did not settle at the scheduled maturity during the third quarter of 2007 due to ABCP market liquidity issues, and as a result the Company reclassified its ABCP to long-term investments from cash and cash equivalents.

On January 16, 2009, a restructuring plan was finalized and restructuring Notes [the “Notes”] were issued in exchange for existing investments. The Notes issued included: [i] notes in a Master Trust (MAV2 – A Notes), which were rated A by DBRS with a face amount value of Cdn$102 million; [ii] subordinate notes (MAV2 – B and C Notes) which were unrated with a face amount value of Cdn$9 million; and [iii] various tracking notes which were issued in exchange for assets deemed ineligible for inclusion in the Master Trust with a face amount value of Cdn$23 million. The criteria for eligibility into the Master Trust included credit quality, an expected return of the assets and arrangements with individual asset providers. The performance of the tracking notes is tied directly to actual performance of the specific assets.

The following is a continuity of the Company’s investment in ABCP:

	2012			2011			2010
Balance, beginning of year	$	82		$	84		$	85
Valuation adjustment [i]		15			—			—
Cash receipts		(9	)		—			(5	)
Foreign exchange and other		2			(2	)		4
	$	90		$	82		$	84

[i] The carrying value of this investment was based on a valuation technique estimating the fair value from the perspective of a market participant. For the year ended December 31, 2012, the Company recorded a $15 million increase in the carrying value of its investment in ABCP in selling, general and administrative expense, due to a reduction of the spread between the anticipated return on the restructured notes and current market indices.

[b] The Company’s net income includes the proportionate share of net income or loss of its equity method investees. When a proportionate share of net income is recorded, it increases equity income in the consolidated statements of income and the carrying value of those investments. Conversely, when a proportionate share of a net loss is recorded, it decreases equity income in the consolidated statements of income and the carrying value of those investments. The following is the Company’s combined proportionate share of the major components of the financial statements of the entities in which the Company accounts for using the equity method:

Balance Sheets

	2012		2011
Current assets	$	344	$	389
Long-term assets	$	74	$	173
Current liabilities	$	150	$	203
Long-term liabilities	$	60	$	58

Statements of Income

	2012		2011		2010
Sales	$	967	$	881	$	698
Cost of goods sold, expenses and income taxes		814		805		580
Net income	$	153	$	76	$	118

Sales to equity method investees were approximately $171 million, $76 million and $18 million in 2012, 2011 and 2010, respectively.

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Business Acquisitions - Additional Information (Detail) (USD $)	12 Months Ended					1 Months Ended		12 Months Ended		1 Months Ended	12 Months Ended
	Dec. 31, 2012 Entity	Dec. 31, 2011	Dec. 31, 2010 Entity	Aug. 31, 2012	May 31, 2011	Jun. 04, 2012 Interior Systems [Member]	Aug. 31, 2012 E-Car [Member]	Dec. 31, 2012 E-Car [Member]	Aug. 31, 2012 E-Car [Member] Preliminary purchase equation allocation [Member]	Oct. 26, 2012 STT Technologies Inc. [Member]	Dec. 31, 2012 STT Technologies Inc. [Member]	Dec. 31, 2012 Ixetic Verwaltungs GmbH [Member]
Schedule Of Business Acquisitions Purchase Price Allocation [Line Items]
Cash acquired	$ 127,000,000					$ 19,000,000	$ 19,000,000	$ 19,000,000		$ 13,000,000	$ 13,000,000	$ 64,000,000
Cash paid	652,000,000	120,000,000	106,000,000	75,000,000		1,000,000		75,000,000			55,000,000	459,000,000
Interest acquired				27.00%			27.00%			50.00%
Net cash outflow	525,000,000	120,000,000	106,000,000				56,000,000			42,000,000		395,000,000
Purchase intangibles									210,000,000
Goodwill	289,000,000	29,000,000	68,000,000					16,000,000		58,000,000	58,000,000	169,000,000
Number of manufacturing facilities in Brazil	4
Percentage of interest in Wuhu Youth Tongyang Auto Plastic Parts Co., Ltd.					51.00%
Total consideration for the acquisitions	525,000,000	157,000,000	120,000,000					56,000,000			42,000,000	395,000,000
Consideration assumed as debt		37,000,000	14,000,000
Change in non-cash working capital	(129,000,000)	35,000,000	(45,000,000)					(48,000,000)			9,000,000	54,000,000
Increase in fixed assets	501,000,000	95,000,000	69,000,000					87,000,000			30,000,000	186,000,000
Deferred tax assets		6,000,000	4,000,000
Other long-term liabilities	35,000,000	28,000,000	5,000,000
Minority interest	11,000,000	7,000,000	3,000,000					11,000,000
Number of production facilities in Argentina			3
Other assets	94,000,000		40,000,000					9,000,000				68,000,000
Deferred tax liabilities			8,000,000
Company's pro forma consolidated sales	31,500,000,000	30,000,000,000
Losses on acquisition	$ 1,400,000,000	$ 900,000,000

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Financial Instruments - Additional Information (Detail)	12 Months Ended						12 Months Ended			12 Months Ended			12 Months Ended
	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2012 Asset-backed Securities [Member] USD ($)	Dec. 31, 2012 Asset-backed Securities [Member] CAD	Dec. 31, 2011 Asset-backed Securities [Member] USD ($)	Dec. 31, 2011 Asset-backed Securities [Member] CAD	Dec. 31, 2012 CANADA Gigajoule	Dec. 31, 2012 CANADA Minimum [Member]	Dec. 31, 2012 CANADA Maximum [Member]	Dec. 31, 2012 UNITED STATES MMBTU	Dec. 31, 2012 UNITED STATES Minimum [Member]	Dec. 31, 2012 UNITED STATES Maximum [Member]	Dec. 31, 2012 Natural Gas Swap Contracts [Member] USD ($)	Dec. 31, 2012 Forward Contracts [Member] USD ($)	Dec. 31, 2012 Propylene Contracts [Member] USD ($) lb	Dec. 31, 2012 Propylene Contracts [Member] Minimum [Member] USD ($)	Dec. 31, 2012 Propylene Contracts [Member] Maximum [Member] USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Foreign exchange forward contracts, gain recognized in other comprehensive income														$ 69,000,000
Foreign exchange forward contracts, loss recognized in other comprehensive income													4,000,000	20,000,000
Swaps outstanding fixed price							700,000			500,000					18,100,000
Swap fixed price								6.28	6.50		6.88	7.06
Fixed price per lbs																0.5375	0.6500
Unrealized gains on contracts															2,000,000
Face value of investments				107,000,000		125,000,000
Trading securities	1,612,000,000	1,407,000,000	90,000,000	90,000,000	82,000,000	84,000,000
Fair value of investments carrying value	9,000,000	12,000,000
Long-term debt due within one year	$ 249,000,000	$ 151,000,000
Percentage of sales to six largest customers	83.00%

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BUSINESS ACQUISITIONS

12 Months Ended

Dec. 31, 2012

BUSINESS ACQUISITIONS

6. BUSINESS ACQUISITIONS

Acquisitions in the year ended December 31, 2012

[i] BDW Technology Group

In January 2012, the Company acquired BDW technologies group, a structural casting supplier of aluminium components, which has operations in Germany, Poland and Hungary. The acquired business has sales primarily to Volkswagen, Audi, Porsche, Mercedes-Benz, Ferrari and ZF.

[ii] Interior Systems

As more fully described in note 3, during the third quarter of 2011 the Company sold an interior systems operation [the “Business”] located in Germany. Subsequent to disposal, the Business continued to incur significant financial losses. By the end of the first quarter of 2012, the Business was experiencing severe liquidity issues. Although the Company had no legal obligation to do so, in light of customer relationship issues and other relevant considerations, on June 4, 2012, the Company re-acquired the Business. This acquisition resulted in acquired cash of $19 million [net of $1 million cash paid].

As part of the acquisition, the Company was able to obtain some pricing concessions from a majority of the Business’ customers. However, the Business is still expected to incur significant losses over the next three years.

[iii] Magna E-Car Systems LP

As more fully described in note 3, on August 31, 2012 the Company acquired the controlling 27% interest in the E-Car partnership for cash consideration of $56 million [net of $19 million cash acquired]. The incremental investment in E-Car was accounted for under the business acquisition method of accounting as a step acquisition which requires that all assets acquired and liabilities of E-Car be measured at fair value.

The preliminary purchase equation allocated $210 million to intangible assets which are primarily technology based intangibles. Given the continuing uncertainties regarding the timing and magnitude of a viable electric vehicle industry, competing electric vehicle technologies, significantly larger competitors, and other factors, the Company has determined that the intangible assets should be amortized on a straight-line basis over the period ending December 31, 2013.

[iv] STT Technologies Inc.

As more fully described in note 3, on October 26, 2012 the Company acquired the remaining 50% interest in STT for cash considerations of $42 million [net of $13 million cash acquired]. The incremental investment in STT required that all assets acquired and liabilities of STT be measured at fair value. This transaction also resulted in $58 million of goodwill recorded.

[v] ixetic Verwaltungs GmbH

In December 2012, the Company acquired ixetic Verwaltungs GmbH [“ixetic”], a manufacturer of automotive vacuum, engine and transmission pumps, which has operations in Germany, Bulgaria and China as well as representation in Brazil, India, Japan and the United States. The purchase price was $395 million [net of $64 million cash acquired] resulting in $169 million of goodwill. The acquired business has sales primarily to BMW, Daimler, Volkswagen, Schaeffler, ZF, Ford, Chrysler, Renault-Nissan and Toyota.

The preliminary purchase equations for these acquisitions are as follows:

	BDW			E-Car			STT			ixetic			Other			Total
Cash	$	11		$	19		$	13		$	64		$	20		$	127
Non-cash working capital		(122	)		(48	)		9			54			(22	)		(129	)
Investments		—			—			—			3			—			3
Fixed assets		188			87			30			186			10			501
Goodwill, net		32			16			58			169			14			289
Other assets		17			9			—			68			—			94
Purchase intangibles		—			210			5			—			—			215
Long-term employee benefit liabilities		—			(2	)		—			(45	)		(2	)		(49	)
Long-term debt		(24	)		—			—			(1	)		—			(25	)
Other long-term liabilities		(35	)		—			—			—			—			(35	)
Deferred tax liabilities		(23	)		—			(5	)		(39	)		(1	)		(68	)
Non-controlling interests		—			(11	)		—			—			—			(11	)
Fair value of net assets		44			280			110			459			19			912
Less: Carrying value of Magna’s equity accounted investment		—			(52	)		(20	)		—			—			(72	)
Gain on re-measurement		—			(153	)		(35	)		—			—			(188	)
Consideration paid		44			75			55			459			19			652
Less: Cash acquired		(11	)		(19	)		(13	)		(64	)		(20	)		(127	)
Net cash outflow	$	33		$	56		$	42		$	395		$	(1	)	$	525

The purchase price allocations for these acquisitions are preliminary and adjustments to the allocations may occur as a result of obtaining more information regarding asset valuations.

Acquisitions in the year ended December 31, 2011

In December 2011, the Company acquired ThyssenKrupp Automotive Systems Industrial do Brasil Ltda, which consists of four manufacturing facilities in Brazil that assemble chassis structural components and modules. The acquired business has sales to Ford, Fiat, Renault-Nissan, Honda and PSA.

In August 2011, the Company acquired Grenville Castings Ltd., a structural casting supplier of aluminum components located in Canada. The acquired business has sales primarily to Ford and General Motors.

In June 2011, the Company acquired Continental Plastics Co., a supplier of interior products, mainly door panel and seat back assemblies. The acquired business is located in the United States with sales primarily to General Motors.

In May 2011, the Company acquired a 51% interest in Wuhu Youth Tongyang Auto Plastic Parts Co., Ltd., a supplier of exterior products, mainly front and rear bumpers. The acquired business is located in China with sales primarily to Chery Automobile Co. Ltd.

In January 2011, the Company acquired Automobiltechnik Dürbheim, a manufacturer of tapping plates which assist in the fastening of bolts. The acquired business is located in Germany and has sales to various OEMs.

The total consideration for these acquisitions was $157 million, consisting of $120 million paid in cash [net of cash acquired] and $37 million of assumed debt.

The net effect of the acquisitions on the Company’s 2011 consolidated balance sheet were increases in non-cash working capital of $35 million, fixed assets of $95 million, goodwill of $29 million, deferred tax assets of $6 million, other long-term liabilities of $28 million, and non-controlling interest of $7 million.

The impact of finalizing the 2011 acquisitions in 2012 was insignificant to the 2012 consolidated financial statements.

Acquisitions in the year ended December 31, 2010

In December 2010, Magna completed the following acquisitions:

[a] Resil Minas, a supplier of seat frames and stampings. The acquired business is primarily located in Brazil with sales to various customers, including Fiat, Ford, General Motors, Volkswagen, IVECO and PSA.

[b] Pabsa S.A., a supplier of complete seats, foam products, trim covers and seat structures. The acquired business has three production facilities in Argentina.

[c] Erhard & Söhne GmbH, a manufacturer of fuel tanks for commercial vehicles and other specialty tanks. The acquired business is located in Germany and has sales to various customers including MAN, Daimler and Scania.

The total consideration for these acquisitions and certain other acquisitions was $120 million, consisting of $106 million paid in cash [net of cash acquired] and $14 million of assumed debt.

The net effect of the acquisitions on the Company’s 2010 consolidated balance sheet was a decrease in non-cash working capital of $45 million, increases in fixed assets of $69 million, goodwill of $68 million, deferred tax assets of $4 million, other assets of $40 million, other long-term liabilities of $5 million, deferred tax liabilities of $8 million, and non-controlling interest of $3 million. The impact of finalizing the 2010 acquisitions in 2011 was insignificant to the 2011 consolidated financial statements.

Pro forma impact [unaudited]

If the acquisitions completed during 2012 and 2011 occurred on January 1, 2011, the Company’s pro forma consolidated sales for the year ended December 31, 2012 would have been $31.5 billion [2011 – $30.0 billion] and the unaudited pro forma consolidated net income would have been $1.4 billion [2011 – $0.9 billion].

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INVENTORIES

12 Months Ended

Dec. 31, 2012

INVENTORIES

7. INVENTORIES

Inventories consist of:

	2012		2011
Raw materials and supplies	$	911	$	800
Work-in-process		260		229
Finished goods		283		253
Tooling and engineering		1,058		763
	$	2,512	$	2,045

Tooling and engineering inventory represents costs incurred on tooling and engineering services contracts in excess of billed and unbilled amounts included in accounts receivable.

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FIXED ASSETS

12 Months Ended

Dec. 31, 2012

FIXED ASSETS

9. FIXED ASSETS

Fixed assets consist of:

	2012			2011
Cost
Land	$	238		$	199
Buildings		1,513			1,195
Machinery and equipment		11,047			9,475
		12,798			10,869
Accumulated depreciation
Buildings		(541	)		(453	)
Machinery and equipment		(6,984	)		(6,180	)
	$	5,273		$	4,236

Included in the cost of fixed assets above are construction in progress expenditures of $939 million [2011 – $842 million] that have not been depreciated.

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Investments - Company's Investment in ABCP (Detail) (ABCP [Member], USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
ABCP [Member]
Schedule of Equity Method Investments [Line Items]
Balance, beginning of year	$ 82	$ 84	$ 85
Valuation adjustment	15
Cash receipts	(9)		(5)
Foreign exchange and other	2	(2)	4
Balance, end of year	$ 90	$ 82	$ 84

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Long-Term Employee Benefit Liabilities - Long-Term Employee Benefits Liabilities (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Employee Benefit Plans [Line Items]
Defined benefit pension plans and other	$ 230	$ 143	$ 97
Termination and long service arrangements	286	229	212
Retirement medical benefits plans	39	37	34
Other long-term employee benefits	5	10	13
Long-term employee benefit obligations	$ 560	$ 419	$ 356

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Fixed Assets - Components of Fixed Assets (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	$ 12,798	$ 10,869
Property plant and equipment, net	5,273	4,236	3,742
Land [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	238	199
Building [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	1,513	1,195
Accumulated depreciation	(541)	(453)
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	11,047	9,475
Accumulated depreciation	$ (6,984)	$ (6,180)

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Stock-Based Compensation - Summary of Stock-Based Compensation Expense Recorded in Selling, General and Administrative Expenses (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Incentive Stock Option Plan [Member]
Unrecognized Stock Based Compensation Expense [Line Items]
Incentive Stock Option Plan	$ 42	$ 31	$ 57
Selling, general and administrative expenses [Member]
Unrecognized Stock Based Compensation Expense [Line Items]
Incentive Stock Option Plan	38	34	53
Selling, general and administrative expenses [Member] | Incentive Stock Option Plan [Member]
Unrecognized Stock Based Compensation Expense [Line Items]
Incentive Stock Option Plan	19	21	43
Selling, general and administrative expenses [Member] | Long-term retention [Member]
Unrecognized Stock Based Compensation Expense [Line Items]
Incentive Stock Option Plan	5	7	9
Selling, general and administrative expenses [Member] | Restricted stock unit [Member]
Unrecognized Stock Based Compensation Expense [Line Items]
Incentive Stock Option Plan	14	6	1
Selling, general and administrative expenses [Member] | Fair value adjustment for liability classified DSUs [Member]
Unrecognized Stock Based Compensation Expense [Line Items]
Incentive Stock Option Plan	$ 4	$ (3)	$ 4

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Investments - Additional Information (Detail) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)	Dec. 31, 2012 ABCP [Member] USD ($)	Dec. 31, 2012 ABCP [Member] CAD	Dec. 31, 2011 ABCP [Member] CAD	Jan. 16, 2009 ABCP [Member] CAD
Schedule of Equity Method Investments [Line Items]
Investments in ABCP					107	125
Restructuring notes in a Master Trust MAV2-A Notes issued under new restructuring plan							102
Restructuring notes in a MAV2-B and C Notes issued under new restructuring plan							9
Tracking notes deemed ineligible for inclusion in the Master Trust							23
Increase in carrying value of equity method investment				15
Sales to equity method investees	$ 171	$ 76	$ 18

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Long-Term Employee Benefit Liabilities - Future Benefit Payments (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012
Defined Benefit Plan Disclosure [Line Items]
Expected employer contributions - 2013	$ 42
2013	29
2014	27
2015	29
2016	31
2017	33
Thereafter	200
Total	349
Pension Plans, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected employer contributions - 2013	30
2013	17
2014	15
2015	16
2016	16
2017	17
Thereafter	93
Total	174
Termination And Long Service Arrangements [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected employer contributions - 2013	10
2013	10
2014	10
2015	11
2016	12
2017	13
Thereafter	95
Total	151
Retirement Medical Benefits Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected employer contributions - 2013	2
2013	2
2014	2
2015	2
2016	3
2017	3
Thereafter	12
Total	$ 24

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EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2012

Computation of Earnings Per Share

Earnings per share are computed as follows:

	2012		2011		2010
Basic earnings per Common or Class B Share:
Net income attributable to Magna International Inc.	$	1,433	$	1,018	$	1,003
Average number of Common and Class B Shares outstanding during the year		232.4		239.3		230.0
Basic earnings per Common or Class B Share	$	6.17	$	4.26	$	4.36
Diluted earnings per Common or Class B Share:
Net income attributable to Magna International Inc.	$	1,433	$	1,018	$	1,003
Average number of Common and Class B Shares outstanding during the year		232.4		239.3		230.0
Adjustments
Stock options and restricted stock [a]		2.8		3.5		3.0
		235.2		242.8		233.0
Diluted earnings per Common or Class B Share	$	6.09	$	4.20	$	4.30

[a] Diluted earnings per Common or Class B Share exclude 2.3 million [2011 – 2.1 million; 2010 – 3.9 million] Common Shares issuable under the Company’s Incentive Stock Option Plan because these options were not “in-the-money”.

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SEGMENTED INFORMATION (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of information with respect to segment

The following tables show certain information with respect to segment disclosures:

	2012
	Total sales			External sales		Depreciation and amortization		Adjusted EBIT			Goodwill		Fixed asset additions		Fixed assets, net
North America
Canada	$	6,343		$	5,907								$	158	$	660
United States		7,518			7,053									294		973
Mexico		3,520			3,281									163		573
Eliminations		(1,046	)		—									—		—
North America		16,335			16,241	$	432	$	1,521		$	701		615		2,206
Europe
Western Europe (excluding Great Britain)		10,089			9,927									246		1,490
Great Britain		961			952									15		58
Eastern Europe		1,847			1,684									117		584
Eliminations		(188	)		—									—		—
Europe		12,709			12,563		283		165			611		378		2,132
Rest of World		2,111			2,010		59		(28	)		160		270		686
Corporate and Other [i]		(318	)		23		27		—			1		11		249
Total reportable segments		30,837			30,837		801		1,658			1,473		1,274		5,273
Other income, net									108
Interest expense, net									(16	)
	$	30,837		$	30,837	$	801	$	1,750		$	1,473	$	1,274	$	5,273
Current assets																9,135
Investments, goodwill, deferred tax assets and other assets																2,701
Consolidated total assets															$	17,109

	2011
	Total sales			External sales		Depreciation and amortization		Adjusted EBIT			Goodwill		Fixed asset additions		Fixed assets, net
North America
Canada	$	5,951		$	5,552								$	115	$	586
United States		7,025			6,514									281		804
Mexico		2,902			2,698									162		477
Eliminations		(1,023	)		—									—		—
North America		14,855			14,764	$	358	$	1,373		$	644		558		1,867
Europe
Western Europe (excluding Great Britain)		10,124			9,963									284		1,111
Great Britain		913			909									7		53
Eastern Europe		1,708			1,557									132		438
Eliminations		(189	)		—									—		—
Europe		12,556			12,429		259		(22	)		393		423		1,602
Rest of World		1,599			1,506		38		56			158		236		485
Corporate and Other [i]		(262	)		49		31		(40	)		1		19		282
Total reportable segments		28,748			28,748		686		1,367			1,196		1,236		4,236
Other expense, net									(156	)
Interest income, net									6
	$	28,748		$	28,748	$	686	$	1,217		$	1,196	$	1,236		4,236
Current assets																8,146
Investments, goodwill, deferred tax assets and other assets																2,297
Consolidated total assets															$	14,679

	2010
	Total sales			External sales		Depreciation and amortization		Adjusted EBIT			Goodwill		Fixed asset additions		Fixed assets, net
North America
Canada	$	5,122		$	4,777								$	126	$	638
United States		5,808			5,348									130		668
Mexico		2,346			2,189									49		371
Eliminations		(906	)		—									—		—
North America		12,370			12,314	$	358	$	1,116		$	651		305		1,677
Europe
Western Europe (excluding Great Britain)		8,349			8,190									189		1,109
Great Britain		813			813									5		58
Eastern Europe		1,256			1,165									119		351
Eliminations		(129	)		—									—		—
Europe		10,289			10,168		242		117			402		313		1,518
Rest of World		1,016			930		27		72			140		44		211
Corporate and Other [i]		(210	)		53		29		(94	)		1		84		336
Total reportable segments		23,465			23,465		656		1,211			1,194		746		3,742
Other expense, net									(25	)
Interest income, net									11
	$	23,465		$	23,465	$	656	$	1,197		$	1,194	$	746		3,742
Current assets																7,485
Investments, goodwill, deferred tax assets and other assets																2,447
Consolidated total assets															$	13,674

Share of E-Car Partnership

Included in the table above are the following amounts related to Magna’s share of the E-Car Partnership:

	Total sales		Equity loss		Amortization of intangibles		Adjusted EBIT
North America	$	12	$	—	$	52	$	(76	)
Europe		12		—		—		(6	)
Corporate and Other		—		35		—		(35	)
Total reportable segments	$	24	$	35	$	52	$	(117	)

For the year ended December 31, 2012, E-Car had total sales of $91 million and total adjusted EBIT loss of $130 million.

Included in the table above are the following amounts related to Magna’s share of the E-Car Partnership:

	Total sales		Equity loss		Amortization of intangibles		Adjusted EBIT
North America	$	—	$	—	$	—	$	—
Europe		—		—		—		—
Corporate and Other		—		66		—		(66	)
Total reportable segments	$	—	$	66	$	—	$	(66	)

For the year ended December 31, 2011, E-Car had total sales of $92 million and total adjusted EBIT loss of $91 million.

Included in the table above are the following amounts related to Magna’s share of the E-Car Partnership:

					Amortization
	Total sales		Equity loss		of intangibles		Adjusted EBIT
North America	$	—	$	—	$	—	$	—
Europe		—		—		—		—
Corporate and Other		8		30		—		(80	)
Total reportable segments	$	8	$	30	$	—	$	(80	)

For the year ended December 31, 2010, E-Car had total sales of $20 million and total adjusted EBIT loss of $89 million.

[i] Included in Corporate and Other Adjusted EBIT are intercompany fees charged to the automotive segments.

Schedule of aggregates external revenues by customer

[b] The following table aggregates external revenues by customer as follows:

	2012		2011		2010
General Motors	$	5,704	$	6,202	$	4,731
Fiat / Chrysler Group		4,637		3,864		3,102
BMW		4,100		4,191		3,090
Ford Motor Company		3,848		3,549		3,371
Volkswagen		3,835		3,187		2,567
Daimler AG		3,367		2,793		2,354
Other		5,346		4,962		4,250
	$	30,837	$	28,748	$	23,465

Summary of external revenues by automotive products and services

[c] The following table summarizes external revenues generated by automotive products and services:

	2012		2011		2010
Exterior and interior systems	$	11,673	$	11,020	$	8,637
Body systems and chassis systems		7,123		6,056		4,801
Powertrain systems		3,825		3,667		3,064
Complete vehicle assembly		2,561		2,690		2,163
Tooling, engineering and other		2,317		2,065		2,005
Vision and electronic systems		2,132		2,066		1,756
Closure systems		1,206		1,184		1,039
	$	30,837	$	28,748	$	23,465

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DEBT AND COMMITMENTS

12 Months Ended

Dec. 31, 2012

DEBT AND COMMITMENTS

14. DEBT AND COMMITMENTS

[a] The Company’s long-term debt, which is substantially uncollateralized, consists of the following:

	2012		2011
Bank term debt at a weighted average interest rate of approximately 8.0% [2011 - 9.4%], denominated primarily in Chinese renminbi and Brazilian real	$	268	$	137
Government loans at a weighted average interest rate of approximately 5.4% [2011 - 5.8%], denominated primarily in euros		15		18
Other		78		42
		361		197
Less due within one year		249		151
	$	112	$	46

[b] Future principal repayments on long-term debt are estimated to be as follows:

2013	$	249
2014		24
2015		31
2016		16
2017		16
Thereafter		25
	$	361

[c] On July 8, 2011, the Company entered into a four-year revolving credit facility in the amount of $2.25 billion. The facility, which matures on July 8, 2015, replaces a $2.0 billion revolving credit facility that was set to expire on July 31, 2012. The facility includes a $100 million Asian tranche and a tranche for Canada, U.S., and Europe, which is fully transferable between jurisdictions and can be drawn in U.S. dollars, Canadian dollars or euros.

[d] Interest expense (income), net includes:

	2012			2011			2010
Interest expense
Current	$	27		$	16		$	9
Long-term		7			3			2
		34			19			11
Interest income		(18	)		(25	)		(22	)
Interest expense (income), net	$	16		$	(6	)	$	(11	)

[e] Interest paid in cash was $32 million for the year ended December 31, 2012 [2011 – $19 million; 2010 – $11 million].

[f] At December 31, 2012, the Company had commitments under operating leases requiring annual rental payments as follows:

	Total
2013	$	318
2014		287
2015		256
2016		233
2017		204
Thereafter		336
	$	1,634

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Segmented Information - Schedule of Information with Respect to Segment (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Segment Reporting Information [Line Items]
Total sales	$ 30,837	$ 28,748	$ 23,465
External sales	30,837	28,748	23,465
Depreciation and amortization	801	686	656
Adjusted EBIT	1,750	1,217	1,197
Goodwill	1,473	1,196	1,194
Fixed asset additions	1,274	1,236	746
Fixed assets, net	5,273	4,236	3,742
Other income (expense), net	108	(156)	(25)
Interest income (expense), net	(16)	6	11
Current assets	9,135	8,146	7,485
Investments, goodwill, deferred tax assets and other assets	2,701	2,297	2,447
Consolidated total assets	17,109	14,679	13,674
Canada [Member]
Segment Reporting Information [Line Items]
Total sales	6,343	5,951	5,122
External sales	5,907	5,552	4,777
Fixed asset additions	158	115	126
Fixed assets, net	660	586	638
United States [Member]
Segment Reporting Information [Line Items]
Total sales	7,518	7,025	5,808
External sales	7,053	6,514	5,348
Fixed asset additions	294	281	130
Fixed assets, net	973	804	668
Mexico [Member]
Segment Reporting Information [Line Items]
Total sales	3,520	2,902	2,346
External sales	3,281	2,698	2,189
Fixed asset additions	163	162	49
Fixed assets, net	573	477	371
North America [Member]
Segment Reporting Information [Line Items]
Total sales	16,335	14,855	12,370
External sales	16,241	14,764	12,314
Depreciation and amortization	432	358	358
Adjusted EBIT	1,521	1,373	1,116
Goodwill	701	644	651
Fixed asset additions	615	558	305
Fixed assets, net	2,206	1,867	1,677
North America [Member] | Intersegment Elimination [Member]
Segment Reporting Information [Line Items]
Total sales	(1,046)	(1,023)	(906)
Europe Excluding Great Britain [Member]
Segment Reporting Information [Line Items]
Total sales	10,089	10,124	8,349
External sales	9,927	9,963	8,190
Fixed asset additions	246	284	189
Fixed assets, net	1,490	1,111	1,109
Great Britain [Member]
Segment Reporting Information [Line Items]
Total sales	961	913	813
External sales	952	909	813
Fixed asset additions	15	7	5
Fixed assets, net	58	53	58
Eastern Europe [Member]
Segment Reporting Information [Line Items]
Total sales	1,847	1,708	1,256
External sales	1,684	1,557	1,165
Fixed asset additions	117	132	119
Fixed assets, net	584	438	351
Europe [Member]
Segment Reporting Information [Line Items]
Total sales	12,709	12,556	10,289
External sales	12,563	12,429	10,168
Depreciation and amortization	283	259	242
Adjusted EBIT	165	(22)	117
Goodwill	611	393	402
Fixed asset additions	378	423	313
Fixed assets, net	2,132	1,602	1,518
Europe [Member] | Intersegment Elimination [Member]
Segment Reporting Information [Line Items]
Total sales	(188)	(189)	(129)
Rest Of World [Member]
Segment Reporting Information [Line Items]
Total sales	2,111	1,599	1,016
External sales	2,010	1,506	930
Depreciation and amortization	59	38	27
Adjusted EBIT	(28)	56	72
Goodwill	160	158	140
Fixed asset additions	270	236	44
Fixed assets, net	686	485	211
Segment Corporate and Other [Member]
Segment Reporting Information [Line Items]
Total sales	(318)	(262)	(210)
External sales	23	49	53
Depreciation and amortization	27	31	29
Adjusted EBIT	0	(40)	(94)
Goodwill	1	1	1
Fixed asset additions	11	19	84
Fixed assets, net	249	282	336
Reportable Segment [Member]
Segment Reporting Information [Line Items]
Total sales	30,837	28,748	23,465
External sales	30,837	28,748	23,465
Depreciation and amortization	801	686	656
Adjusted EBIT	1,658	1,367	1,211
Goodwill	1,473	1,196	1,194
Fixed asset additions	1,274	1,236	746
Fixed assets, net	$ 5,273	$ 4,236	$ 3,742

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ACCUMULATED OTHER COMPREHENSIVE INCOME

12 Months Ended

Dec. 31, 2012

ACCUMULATED OTHER COMPREHENSIVE INCOME

19. ACCUMULATED OTHER COMPREHENSIVE INCOME

The following is a continuity schedule of accumulated other comprehensive income:

	2012			2011			2010
Accumulated net unrealized gain on translation of net investment in foreign operations
Balance, beginning of year	$	547		$	759		$	742
Net unrealized gain (loss)		86			(171	)		20
Repurchase of shares under normal course issuer bids [note 18]		(4	)		(41	)		(3	)
Balance, end of year		629			547			759
Accumulated net unrealized gain (loss) on cash flow hedges [a]
Balance, beginning of year		(23	)		40			(13	)
Net unrealized gain (loss)		75			(41	)		80
Reclassification of net gain to net income		(18	)		(22	)		(27	)
Balance, end of year		34			(23	)		40
Accumulated net unrealized gain on available-for-sale investments
Balance, beginning of year		5			11			—
Net unrealized (loss) gain		(4	)		(6	)		11
Balance, end of year		1			5			11
Accumulated net unrealized loss on other long-term liabilities [b]
Balance, beginning of year		(107	)		(58	)		(44	)
Net unrealized loss		(72	)		(52	)		(18	)
Reclassification of net loss to net income		11			3			4
Balance, end of year		(168	)		(107	)		(58	)
Total accumulated other comprehensive income [c]	$	496		$	422		$	752

[a] The amount of income tax (obligation) benefit that has been netted in the accumulated net unrealized gain (loss) on cash flow hedges is as follows:

	2012			2011			2010
Balance, beginning of year	$	12		$	(15	)	$	2
Net unrealized (gain) loss		(30	)		18			(22	)
Reclassification of net gain to net income		5			9			5
Balance, end of year	$	(13	)	$	12		$	(15	)

[b] The amount of income tax benefit that has been netted in the accumulated net unrealized loss on other long-term liabilities is as follows:

	2012			2011			2010
Balance, beginning of year	$	24		$	1		$	6
Net unrealized loss (gain)		15			25			(3	)
Reclassification of net loss to net income		(3	)		(2	)		(2	)
Balance, end of year	$	36		$	24		$	1

[c] The amount of other comprehensive income that is expected to be reclassified to net income during 2013 is $18 million [net of income tax of $7 million].

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Stock-Based Compensation - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended		1 Months Ended	12 Months Ended			12 Months Ended		12 Months Ended
	Dec. 31, 2012	Dec. 31, 2010	Jun. 22, 2012 Chairman And Founder [Member]	Aug. 16, 2012 Chairman And Founder [Member]	Feb. 26, 2012 Chairman And Founder [Member]	Jul. 13, 2011 Chairman And Founder [Member]	Dec. 31, 2012 Stock option plan 2009 [Member]	Dec. 31, 2011 Stock option plan 2009 [Member]	Dec. 31, 2012 Stock option plan 1987 [Member]	Dec. 31, 2012 1987 Stock Option Plan granted prior to December 2003 [Member]
Schedule Of Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Activity [Line Items]
Maximum number of shares, issued under the option plan							16,000,000
Number of shares available to be granted							8,457,666	9,770,666
Period of granted option							7 years		7 years	10 years
Option vested under stock option plan to employees and consultants							One-third on each of the first three anniversaries of the date of grant
Exercised number of shares, under stock option plan			1,083,333	900,001
Cash payments made on cashless exercise of stock options			$ 25	$ 15	$ 4	$ 5
Holding period of restricted stock available to executive	4 years
Share based compensation arrangement long-term retention program restricted stock available to executive releasing period	10 years
Number of days considered for weighted average trading price	20 days
Percentage of annual retainers	60.00%
Percentage of additional annual retainers	100.00%
Percentage of increments	25.00%
One-time compensation expense		$ 20

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ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of accumulated other comprehensive income

The following is a continuity schedule of accumulated other comprehensive income:

	2012			2011			2010
Accumulated net unrealized gain on translation of net investment in foreign operations
Balance, beginning of year	$	547		$	759		$	742
Net unrealized gain (loss)		86			(171	)		20
Repurchase of shares under normal course issuer bids [note 18]		(4	)		(41	)		(3	)
Balance, end of year		629			547			759
Accumulated net unrealized gain (loss) on cash flow hedges [a]
Balance, beginning of year		(23	)		40			(13	)
Net unrealized gain (loss)		75			(41	)		80
Reclassification of net gain to net income		(18	)		(22	)		(27	)
Balance, end of year		34			(23	)		40
Accumulated net unrealized gain on available-for-sale investments
Balance, beginning of year		5			11			—
Net unrealized (loss) gain		(4	)		(6	)		11
Balance, end of year		1			5			11
Accumulated net unrealized loss on other long-term liabilities [b]
Balance, beginning of year		(107	)		(58	)		(44	)
Net unrealized loss		(72	)		(52	)		(18	)
Reclassification of net loss to net income		11			3			4
Balance, end of year		(168	)		(107	)		(58	)
Total accumulated other comprehensive income [c]	$	496		$	422		$	752

Summary of amount of income tax (obligation) benefit

[a] The amount of income tax (obligation) benefit that has been netted in the accumulated net unrealized gain (loss) on cash flow hedges is as follows:

	2012			2011			2010
Balance, beginning of year	$	12		$	(15	)	$	2
Net unrealized (gain) loss		(30	)		18			(22	)
Reclassification of net gain to net income		5			9			5
Balance, end of year	$	(13	)	$	12		$	(15	)

Income tax benefit in the accumulated net unrealized loss on other long-term liabilities

[b] The amount of income tax benefit that has been netted in the accumulated net unrealized loss on other long-term liabilities is as follows:

	2012			2011			2010
Balance, beginning of year	$	24		$	1		$	6
Net unrealized loss (gain)		15			25			(3	)
Reclassification of net loss to net income		(3	)		(2	)		(2	)
Balance, end of year	$	36		$	24		$	1

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Accumulated Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Accumulated net unrealized gain on translation of net investment in foreign operations
Balance, beginning of year	$ 547	$ 759	$ 742
Net unrealized gain (loss)	86	(171)	20
Repurchase of shares under normal course issuer bids [note 18]	(4)	(41)	(3)
Balance, end of year	629	547	759
Accumulated net unrealized gain(loss) on cash flow hedges [a]
Balance, beginning of year	(23)	40	(13)
Net unrealized gain(loss)	75	(41)	80
Reclassification of net gain to net income	(18)	(22)	(27)
Balance, end of year	34	(23)	40
Accumulated net unrealized gain on available-for-sale investments
Balance, beginning of year	5	11
Net unrealized (loss) gain	(4)	(6)	11
Balance, end of year	1	5	11
Accumulated net unrealized loss on other long-term liabilities [b]
Balance, beginning of year	(107)	(58)	(44)
Net unrealized loss	(72)	(52)	(18)
Reclassification of net loss to net income	11	3	4
Balance, end of year	(168)	(107)	(58)
Total accumulated other comprehensive income [c]	$ 496	$ 422	$ 752

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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Summary of income tax rate

[a] The provision for income taxes differs from the expense that would be obtained by applying the Canadian statutory income tax rate as a result of the following:

	2012			2011			2010
Canadian statutory income tax rate		26.5	%		28.3	%		31.0	%
Manufacturing and processing profits deduction		(0.7	)		(0.8	)		(0.6	)
Foreign rate differentials		(1.5	)		(2.0	)		(4.2	)
Losses not benefited		5.8			11.4			3.3
Utilization of losses previously not benefited		(0.3	)		(10.2	)		(9.4	)
Earnings of equity accounted investees		(1.2	)		(1.6	)		(2.2	)
Investment tax credits		(2.3	)		(1.6	)		(1.3	)
Valuation allowance on deferred tax assets [i]		(5.0	)		(6.5	)		(0.3	)
Re-measurement gains		(1.1	)		—			—
Other		(1.7	)		(0.4	)		(0.1	)
Effective income tax rate		18.5	%		16.6	%		16.2	%

[i] Accounting standards require that the Company assess whether valuation allowances should be established or maintained against its deferred tax assets, based on consideration of all available evidence, using a more-likely-than-not recognition threshold. The factors the Company uses to assess the likelihood of realization are its history of losses, forecasts of future pre-tax income and tax planning strategies that could be implemented to realize the deferred tax assets.

Details of income before income taxes by jurisdiction

[b] The details of income before income taxes by jurisdiction are as follows:

	2012		2011		2010
Canadian	$	996	$	710	$	497
Foreign		754		507		700
	$	1,750	$	1,217	$	1,197

Details of income tax provision (recovery)

[c] The details of the income tax provision (recovery) are as follows:

	2012			2011			2010
Current
Canadian	$	170		$	115		$	73
Foreign		200			163			138
		370			278			211
Deferred
Canadian		(6	)		7			11
Foreign		(40	)		(83	)		(28	)
		(46	)		(76	)		(17	)
	$	324		$	202		$	194

Summary of deferred income taxes provided on temporary differences

[d] Deferred income taxes have been provided on temporary differences, which consist of the following:

	2012			2011			2010
Tax depreciation greater (less) than book depreciation	$	13		$	51		$	(13	)
Book amortization less than (in excess of) tax amortization		16			—			(20	)
Liabilities currently not deductible for tax		(29	)		(28	)		(27	)
Net tax losses (benefited) utilized		(11	)		(37	)		48
Change in valuation allowance on deferred tax assets		(89	)		(78	)		(3	)
Net tax credits utilized		53			24			—
Other		1			(8	)		(2	)
	$	(46	)	$	(76	)	$	(17	)

Summary of deferred tax assets and liabilities

[e] Deferred tax assets and liabilities consist of the following temporary differences:

	2012			2011
Assets
Tax benefit of loss carryforwards	$	628		$	527
Liabilities currently not deductible for tax		263			219
Tax credit carryforwards		35			73
Unrealized loss on cash flow hedges and retirement liabilities		48			51
		974			870
Valuation allowance against tax benefit of loss carryforwards		(504	)		(454	)
Other valuation allowance		(45	)		(103	)
		425			313
Liabilities
Tax depreciation in excess of book depreciation		199			135
Other assets book value in excess of tax value		77			20
Unrealized gain on cash flow hedges and retirement liabilities		19			8
Other		30			—
		325			163
Net deferred tax assets	$	100		$	150

Net deferred tax assets presented on the Consolidated Balance Sheet

The net deferred tax assets are presented on the consolidated balance sheet in the following categories:

	2012			2011
Current deferred tax assets	$	170		$	206
Current deferred tax liabilities		(19	)		(44	)
Long-term deferred tax assets		90			69
Long-term deferred tax liabilities		(141	)		(81	)
	$	100		$	150

Summary of the changes in gross unrecognized tax benefits

A summary of the changes in gross unrecognized tax benefits is as follows:

	2012			2011
Balance, beginning of year	$	252		$	257
Additions based on tax positions related to current year		68			14
(Reductions)/additions based on tax positions of prior years		(31	)		13
Settlements		(10	)		(12	)
Statute expirations		(5	)		(16	)
Foreign currency translation		5			(4	)
	$	279		$	252

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Accumulated Other Comprehensive Income - Income Tax Benefit in Accumulated Net Unrealized Loss on Other Long-Term Liabilities (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Balance, beginning of year	$ 24	$ 1	$ 6
Net unrealized loss (gain)	15	25	(3)
Reclassification of net loss to net income	(3)	(2)	(2)
Balance, end of year	$ 36	$ 24	$ 1

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Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Current assets
Cash and cash equivalents	$ 1,522	$ 1,325
Accounts receivable	4,774	4,398
Inventories	2,512	2,045
Deferred tax assets	170	206
Prepaid expenses and other	157	172
Total current assets	9,135	8,146
Investments	385	438
Fixed assets, net	5,273	4,236
Goodwill	1,473	1,196
Deferred tax assets	90	69
Other assets	753	594
Consolidated total assets	17,109	14,679
Current liabilities
Bank indebtedness	71	36
Accounts payable	4,450	3,961
Accrued salaries and wages	617	525
Other accrued liabilities	1,185	1,002
Income taxes payable	93	5
Deferred tax liabilities	19	44
Long-term debt due within one year	249	151
Total current liability	6,684	5,724
Long-term employee benefit liabilities	560	419
Long-term debt	112	46
Other long-term liabilities	154	207
Deferred tax liabilities	141	81
Total liability	7,651	6,477
Shareholders' equity
Common Shares [issued: 233,155,783; 2011 - 233,317,792]	4,391	4,373
Contributed surplus	80	63
Retained earnings	4,462	3,317
Accumulated other comprehensive income	496	422
Stockholders equity attributable to Magna International Inc	9,429	8,175
Non-controlling interest	29	27
Total stockholder's equity	9,458	8,202
Total liability and stockholders' equity	$ 17,109	$ 14,679

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Long-Term Employee Benefit Liabilities - Summary of Weighted Average Significant Actuarial Assumptions Adopted in Measuring Company's Projected Termination and Long Service Benefit Obligations and Net Periodic Benefit Cost (Detail) (Termination And Long Service Arrangements [Member])	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Termination And Long Service Arrangements [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Discount rate	4.20%	5.40%	4.90%
Rate of compensation increase	3.90%	4.00%	3.90%

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OTHER (INCOME) EXPENSE, NET

12 Months Ended

Dec. 31, 2012

OTHER (INCOME) EXPENSE, NET

3. OTHER (INCOME) EXPENSE, NET

Other (income) expense, net consists of significant items such as: restructuring charges generally related to plant closures; impairment charges; gains or losses on disposal of facilities; re-measurement gains on acquisitions; and other items not reflective of on-going operating profit or loss. Other (income) expense, net consists of:

	2012			2011			2010
North America [a]
Impairment of long-lived assets	$	2		$	7		$	7
Re-measurement gain of STT		(35	)		—			—
Settlement agreement		—			11			—
Insurance proceeds		—			(15	)		—
Restructuring charges		—			—			32
		(33	)		3			39
Europe [b]
Restructuring charges		55			—			—
Impairment of long-lived assets		23			14			16
Loss on disposal of facility		—			129			—
Customer bankruptcy		—			11			—
		78			154			16
Rest of World [c]
Gain on disposal of facility		—			—			(14	)
Corporate [d]
Re-measurement gain of E-Car		(153	)		—			—
Write down of real estate		—			9			—
Gain on sale of investment		—			(10	)		—
Gain on deconsolidation of E-Car		—			—			(16	)
		(153	)		(1	)		(16	)
	$	(108	)	$	156		$	25

[a] North America

For the year ended December 31, 2012

In conjunction with its annual business planning cycle, during the fourth quarter of 2012 the Company recorded long-lived asset impairment charges of $2 million [$1 million after tax] in North America related to specific fixed assets at a metal fabricating facility in the United States.

On October 26, 2012, the Company acquired the remaining 50% interest in STT Technologies Inc. [“STT”] for cash consideration of $55 million. STT is a manufacturer of automotive pumps with operations in Canada and Mexico. Prior to the acquisition, the Company accounted for this investment using the equity method of accounting.

The incremental investment in STT was accounted for under the business acquisition method of accounting as a step acquisition which requires that Magna re-measures its pre-existing investment in STT at fair value and recognize any gains or losses in income. The estimated fair value of Magna’s investment immediately before the closing date was $55 million, which resulted in the recognition of a non-cash gain of $35 million [$35 million after tax].

For the year ended December 31, 2011

During the third quarter of 2011, a settlement agreement was finalized in connection with the settlement of certain patent infringement and other claims. The Company recorded an $11 million expense in the third quarter of 2011 in relation to these arrangements.

During the fourth quarter of 2011, the Company recorded long-lived asset impairment charges of $7 million [$7 million after tax] related to a roof systems facility in the United States.

During the fourth quarter of 2011, the Company received proceeds pursuant to an insurance claim for fire damages related to an interior systems facility in the United States. The proceeds received were $15 million in excess of the damaged assets’ net book value and the losses previously recognized, and was recorded in income.

For the year ended December 31, 2010

During the fourth quarter of 2010, the Company recorded long-lived asset impairment charges of $7 million [$5 million after tax] related to a die casting facility in Canada.

In addition, during 2010, the Company recorded restructuring and rationalization costs of $32 million [$27 million after tax] related to the planned closure of a powertrain systems facility and two body & chassis systems facilities in the United States, approximately $7 million remains to be paid subsequent to 2012.

[b] Europe

For the year ended December 31, 2012

As a result of continuing economic uncertainty in Europe, recent customer announcements related to plant closures, the profitability of certain facilities and the level of future booked business, management determined that restructuring would have to be completed in its traditional European markets in order to remain cost competitive over the long-term. As a result, during the fourth quarter of 2012, the Company recorded restructuring charges of $55 million [$53 million after tax] in Europe primarily at its exterior and interior systems and complete vehicle and engineering services operations.

Substantially all of these restructuring costs will be paid subsequent to 2012.

During the fourth quarter of 2012, the Company recorded long-lived asset impairment charges of $23 million [$22 million after tax] primarily related to exterior and interior systems facilities.

For the year ended December 31, 2011

During the third quarter of 2011, the Company sold an interior systems operation located in Germany and recorded a loss on disposal of $113 million. This operation, whose long-lived assets were substantially impaired in 2010, had a history of losses which were projected to continue throughout the business planning period. Under the terms of the 2011 sale arrangements [the “SPA”], the Company agreed to fund the buyer $67 million, to be satisfied with certain working capital items, cash and the assumption of certain liabilities. The remaining net assets of the operation of $26 million were assigned no value by the buyer and accordingly, were expensed as part of the total loss on disposal. Simultaneously, the Company reached a commercial settlement with one of the facility’s customers regarding the cancellation of certain production orders whereby the Company reimbursed the customer costs of $20 million.

Final settlement of the SPA did not occur during 2011 and in the fourth quarter of 2011 an additional $16 million was accrued in relation to the ongoing disputes with the purchaser bringing the total loss on disposal to $129 million.

As more fully described in note 6, on June 4, 2012, the Company re-acquired the above operation.

During the fourth quarter of 2011, the Company recorded long-lived asset impairment charges of $14 million [$13 million after tax] related to various facilities in Europe.

During the fourth quarter of 2011, the Company recorded an $11 million charge related to the insolvency of Saab.

For the year ended December 31, 2010

During the fourth quarter of 2010, the Company recorded long-lived asset impairment charges of $16 million [$16 million after tax] related to an interior systems facility in Germany.

[c] Rest of World

For the year ended December 31, 2010

During the first quarter of 2010, the Company sold its interest in an electronics systems joint venture in China for proceeds of $30 million and recognized a $14 million gain on disposal.

[d] Corporate

For the year ended December 31, 2012

On August 31, 2012, the Company acquired the controlling 27% interest in the Magna E-Car Systems L.P. [“E-Car”] partnership from a company affiliated with the Stronach Group for cash consideration of $75 million. The purchase was reviewed, negotiated and approved by the Company’s independent directors with the benefit of independent legal advice from Fasken Martineau DuMoulin LLP, independent financial advice from TD Securities Inc. [“TD”] and an independent valuation prepared by PricewaterhouseCoopers LLP [“PwC”]. The purchase price represents the midpoint of the valuation range determined by PwC and TD delivered a fairness opinion to the independent directors to the effect that the transaction is fair, from a financial point of view, to the Company.

Prior to the acquisition, the Company held the remaining 73% non-controlling interest in E-Car and accounted for this investment using the equity method of accounting.

The incremental investment in E-Car was accounted for under the business acquisition method of accounting as a step acquisition. The estimated fair value of Magna’s partnership interest immediately before the closing date was $205 million, which resulted in the recognition of a non-cash gain of $153 million [$125 million after tax].

For the year ended December 31, 2011

During 2011, five excess corporate real estate assets were sold to entities associated with the Company’s Founder and Honorary Chairman, Mr. Stronach and/or the Company’s former Co-Chief Executive Officer, Siegfried Wolf. Based on the appraisals obtained by the former Corporate Governance and Compensation Committee, the appraised fair value range for the properties was less than their carrying value and, accordingly, the Company recorded a $9 million impairment charge in the first quarter of 2011. The sales were approved by the independent members of Magna’s Board of Directors based on the recommendations of the former Corporate Governance and Compensation Committee and were completed during 2011.

During the second quarter of 2011, the Company sold its 40% non-controlling interest in an equity accounted investment for proceeds of $151 million [Cdn$147 million] and recognized a $10 million gain on disposal.

For the year ended December 31, 2010

On August 31, 2010, following approval by the Company’s former Class A Subordinate Voting and Class B Shareholders, the Company completed a court-approved plan of arrangement [the “Arrangement”] in which its dual-class share structure was collapsed. In addition, the transaction: [i] set a declining fee schedule for the consulting, business development and business services contracts Magna has in place with its former Chairman, Frank Stronach and his affiliated entities and a termination date of December 31, 2014; and [ii] established a partnership with the Stronach Group to pursue opportunities in the vehicle electrification business.

E-Car, involved the engineering, development and integration of electric vehicles of any type, the development, testing and manufacturing of batteries and battery packs for hybrid and electric vehicles and all ancillary activities in connection with electric vehicle technologies. Magna’s original investment in the partnership included the assets of the Company’s recently established E-Car Systems vehicle electrification and battery business unit, certain other vehicle electrification assets, and $145 million in cash. On August 31, 2010, the Stronach Group invested $80 million in cash for a 27% controlling equity interest in the partnership, reducing Magna’s equity interest to 73%. The Company had no obligation to make additional investments in E-Car under the terms of the E-Car partnership agreement. For accounting purposes, the partnership was a variable interest entity. Magna was not considered the primary beneficiary; and as a result, the Company’s interest in E-Car was accounted for using the equity method. As a result of deconsolidating the E-Car partnership, the Company showed a reduction of cash of $91 million representing the cash in the partnership at August 31, 2010. In addition, the Company recorded its investment in E-Car at its fair value and recognized a $16 million gain in income.

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Details of Consolidated Statements of Cash Flows - Details of Items Not Involving Current Cash Flows (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Depreciation and amortization	$ 801	$ 686	$ 656
Other non-cash charges	154	110	148
Amortization of other assets included in cost of goods sold	113	80	67
Deferred income taxes	(46)	(76)	(17)
Equity income	(151)	(121)	(132)
Non-cash portion of Other (income) expense, net	(163)	147	7
Items not involving current cash flows	$ 708	$ 826	$ 729

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Debt And Commitments - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Period of revolving credit facility	4 years
Borrowings under revolving credit facility	$ 2,250,000,000
Line of credit facility borrowing capacity, replaced	2,000,000,000
Line of credit facility fully transferable amount	100,000,000
Interest paid in cash	$ 32,000,000	$ 19,000,000	$ 11,000,000

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Accumulated Other Comprehensive Income - Summary of Amount of Income Tax (Obligation) Benefit (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Balance, beginning of year	$ 12	$ (15)	$ 2
Net unrealized (gain) loss	(30)	18	(22)
Reclassification of net gain to net income	5	9	5
Balance, end of year	$ (13)	$ 12	$ (15)

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Income Taxes - Summary of Income Tax Rate (Detail)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Taxes [Line Items]
Canadian statutory income tax rate	26.50%	28.30%	31.00%
Manufacturing and processing profits deduction	(0.70%)	(0.80%)	(0.60%)
Foreign rate differentials	(1.50%)	(2.00%)	(4.20%)
Losses not benefited	5.80%	11.40%	3.30%
Utilization of losses previously not benefited	(0.30%)	(10.20%)	(9.40%)
Earnings of equity accounted investees	(1.20%)	(1.60%)	(2.20%)
Investment tax credits	(2.30%)	(1.60%)	(1.30%)
Valuation allowance on deferred tax assets	(5.00%)	(6.50%)	(0.30%)
Re-measurement gains	(1.10%)	0.00%	0.00%
Other	(1.70%)	(0.40%)	(0.10%)
Effective income tax rate	18.50%	16.60%	16.20%

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FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2012

FINANCIAL INSTRUMENTS

20. FINANCIAL INSTRUMENTS

[a] Foreign exchange contracts

At December 31, 2012, the Company had outstanding foreign exchange forward contracts representing commitments to buy and sell various foreign currencies. Significant commitments are as follows:

	For Canadian dollars										For U.S. dollars
Buy (Sell)	U.S. dollar amount			Weighted average rate		Euro amount			Weighted average rate		Peso amount		Weighted average rate
2013		229			1.01252		48			1.31881		3,179		0.07313
2013		(600	)		1.02054		(8	)		1.28626		—		—
2014		31			1.04151		34			1.31939		2,071		0.06844
2014		(271	)		1.01573		—			—		—		—
2015		23			1.03073		—			—		799		0.06894
2015		(104	)		1.01754		—			—		—		—
2016		12			1.03697		—			—		—		—
2016		(4	)		1.04751		—			—		—		—
		(684	)				74					6,049

	For euros
Buy (Sell)	U.S. dollar amount			Weighted average rate		GBP amount			Weighted average rate		Czech Koruna amount			Weighted average rate		Polish Zlotys amount		Weighted average rate
2013		53			0.75541		41			1.17565		2,488			0.03988		86		0.23344
2013		(93	)		0.76441		(14	)		1.24572		(11	)		0.04014		—		—
2014		17			0.74515		31			1.14482		1,572			0.03980		41		0.22452
2014		(52	)		0.77097		—			—		—			—		—		—
2015		—			—		13			1.19170		784			0.03971		—		—
2015		(35	)		0.77597		—			—		—			—		—		—
2016		(13	)		0.77162		—			—		—			—		—		—
		(123	)				71					4,833					127

Based on forward foreign exchange rates as at December 31, 2012 for contracts with similar remaining terms to maturity, the gains and losses relating to the Company’s foreign exchange forward contracts recognized in other comprehensive income are approximately $69 million and $20 million, respectively [note 19].

The Company does not enter into foreign exchange forward contracts for speculative purposes.

[b] Commodity contracts

The Company uses commodity contracts to manage the cash flow risk of a portion of its forecasted commodity purchases in Canada, the United States and Italy. The Company does not enter into commodity contracts for speculative purposes. The commodity contracts consist of:

[i] Natural gas swap contracts

The natural gas swap contracts outstanding at December 31, 2012 have a total volume of 0.7 million Gigajoule [“GJ”] and a fixed price range of between $6.28 per GJ and $6.50 per GJ for Canada and a total volume of 0.5 million MMBTU [“Million British Thermal Units”] and a fixed price range of between $6.88 per MMBTU and $7.06 per MMBTU for the United States. These natural gas swap contracts extend through the period to December 2014.

The unrealized losses on these natural gas swap contracts at December 31, 2012 were $4 million and are recognized in other comprehensive income [note 19].

[ii] Propylene contracts

The Company entered into propylene contracts during 2012 which extend through September 2013. Contracts outstanding at December 31, 2012 have a total volume of 18.1 million pounds [“lbs”] and a fixed price range of between $0.5375 per lbs and $0.65 per lbs. The unrealized gains on these propylene contracts at December 31, 2012 were $2 million and are recognized in other comprehensive income [note 19].

[iii] Silver and copper

The Company entered into silver and copper contracts during the year. The amounts of these contracts are not significant. The unrealized losses on these silver and copper contracts at December 31, 2012 were not significant.

[c] Financial assets and liabilities

The Company’s financial assets and liabilities consist of the following:

	2012		2011
Held-for-trading
Cash and cash equivalents	$	1,522	$	1,325
Investment in ABCP [note 8]		90		82
	$	1,612	$	1,407
Held-to-maturity investments
Severance investments	$	8	$	5
Available-for-sale investments
Equity investments	$	9	$	12
Loans and receivables
Accounts receivable	$	4,774	$	4,398
Long-term receivables included in other assets [note 12]		95		176
	$	4,869	$	4,574

	2012			2011
Other financial liabilities
Bank indebtedness	$	71		$	36
Long-term debt (including portion due within one year)		361			197
Accounts payable		4,450			3,961
	$	4,882		$	4,194
Derivatives designated as effective hedges, measured at fair value
Foreign currency contracts
Prepaid expenses	$	37		$	21
Other assets		32			15
Other accrued liabilities		(11	)		(31	)
Other long-term liabilities		(9	)		(38	)
		49			(33	)
Natural gas contracts
Prepaid expenses		2			—
Other accrued liabilities		(3	)		(6	)
Other long-term liabilities		(1	)		(3	)
		(2	)		(9	)
	$	47		$	(42	)

[d] Fair value

The Company determined the estimated fair values of its financial instruments based on valuation methodologies it believes are appropriate; however, considerable judgment is required to develop these estimates. Accordingly, these estimated fair values are not necessarily indicative of the amounts the Company could realize in a current market exchange. The estimated fair value amounts can be materially affected by the use of different assumptions or methodologies. The methods and assumptions used to estimate the fair value of financial instruments are described below:

Cash and cash equivalents, accounts receivable, bank indebtedness and accounts payable.

Due to the short period to maturity of the instruments, the carrying values as presented in the consolidated balance sheets are reasonable estimates of fair values.

Investments

At December 31, 2012, the Company held Canadian third party ABCP with a face value of Cdn$107 million [2011 – Cdn$125 million]. The carrying value and estimated fair value of this investment was Cdn$90 million [2011 – Cdn$84 million]. As fair value information is not readily determinable for the Company’s investment in ABCP, the fair value was based on a valuation technique estimating the fair value from the perspective of a market participant [note 8].

At December 31, 2012, the Company held available-for-sale investments in publicly traded companies. At December 31, 2012, the carrying value and fair value of these investments was $9 million [2011 – $12 million], which was based on the closing share prices of these investments.

Term debt

The Company’s term debt includes $249 million due within one year. Due to the short period to maturity of this debt, the carrying value as presented in the consolidated balance sheet is a reasonable estimate of its fair value.

[e] Credit risk

The Company’s financial assets that are exposed to credit risk consist primarily of cash and cash equivalents, accounts receivable, held-to-maturity investments and foreign exchange and commodity forward contracts with positive fair values.

Cash and cash equivalents, which consist of short-term investments, are only invested in governments, bank term deposits and bank commercial paper with an investment grade credit rating. Credit risk is further reduced by limiting the amount which is invested in certain governments or any major financial institution.

The Company’s held-for-trading investments include an investment in ABCP [note 8]. Given the continuing uncertainties regarding the value of the underlying assets, the amount and timing of cash flows and the risk of collateral calls in the event that spreads widened considerably, the Company could be exposed to further losses on its investment.

The Company is also exposed to credit risk from the potential default by any of its counterparties on its foreign exchange forward contracts. The Company mitigates this credit risk by dealing with counterparties who are major financial institutions that the Company anticipates will satisfy their obligations under the contracts.

In the normal course of business, the Company is exposed to credit risk from its customers, substantially all of which are in the automotive industry and are subject to credit risks associated with the automotive industry. For the year ended December 31, 2012, sales to the Company’s six largest customers [including the Detroit 3] represented 83% of the Company’s total sales; and substantially all of its sales are to customers in which the Company has ongoing contractual relationships.

[f] Currency risk

The Company is exposed to fluctuations in foreign exchange rates when manufacturing facilities have committed to the delivery of products for which the selling price has been quoted in currencies other than the facilities’ functional currency, and when materials and equipment are purchased in currencies other than the facilities’ functional currency. In an effort to manage this net foreign exchange exposure, the Company employs hedging programs, primarily through the use of foreign exchange forward contracts [note 20[a]].

As at December 31, 2012, the net foreign exchange exposure, after considering the impact of foreign exchange contracts, was not material.

[g] Interest rate risk

The Company is not exposed to significant interest rate risk due to the short-term maturity of its monetary current assets and current liabilities. In particular, the amount of interest income earned on cash and cash equivalents is impacted more by investment decisions made and the demands to have available cash on hand, than by movements in interest rates over a given period.

In addition, the Company is not exposed to interest rate risk on its long-term debt instruments as the interest rates on these instruments are fixed.

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Segmented Information - Share of E-Car Partnership (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Segment Reporting Information [Line Items]
Total sales	$ 30,837	$ 28,748	$ 23,465
E-Car [Member]
Segment Reporting Information [Line Items]
Total sales	91	92	20
Total adjusted EBIT loss	$ 130	$ 91	$ 89

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Income Taxes - Summary of Deferred Tax Assets and Liabilities (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Income Taxes [Line Items]
Tax benefit of loss carryforwards	$ 628	$ 527
Liabilities currently not deductible for tax	263	219
Tax credit carryforwards	35	73
Unrealized loss on cash flow hedges and retirement liabilities	48	51
Deferred tax assets, Gross, Total	974	870
Valuation allowance against tax benefit of loss carryforwards	(504)	(454)
Other valuation allowance	(45)	(103)
Deferred Tax Assets, Net, Total	425	313
Tax depreciation in excess of book depreciation	199	135
Other assets book value in excess of tax value	77	20
Unrealized gain on cash flow hedges and retirement liabilities	19	8
Other	30	0
Deferred tax liabilities, total	325	163
Net deferred tax assets	$ 100	$ 150

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INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2012

Company's investment in ABCP

The following is a continuity of the Company’s investment in ABCP:

	2012			2011			2010
Balance, beginning of year	$	82		$	84		$	85
Valuation adjustment [i]		15			—			—
Cash receipts		(9	)		—			(5	)
Foreign exchange and other		2			(2	)		4
	$	90		$	82		$	84

[i] The carrying value of this investment was based on a valuation technique estimating the fair value from the perspective of a market participant. For the year ended December 31, 2012, the Company recorded a $15 million increase in the carrying value of its investment in ABCP in selling, general and administrative expense, due to a reduction of the spread between the anticipated return on the restructured notes and current market indices.

Company's combined proportionate share of major components of financial statements

[b] The Company’s net income includes the proportionate share of net income or loss of its equity method investees. When a proportionate share of net income is recorded, it increases equity income in the consolidated statements of income and the carrying value of those investments. Conversely, when a proportionate share of a net loss is recorded, it decreases equity income in the consolidated statements of income and the carrying value of those investments. The following is the Company’s combined proportionate share of the major components of the financial statements of the entities in which the Company accounts for using the equity method:

Balance Sheets

	2012		2011
Current assets	$	344	$	389
Long-term assets	$	74	$	173
Current liabilities	$	150	$	203
Long-term liabilities	$	60	$	58

Statements of Income

	2012		2011		2010
Sales	$	967	$	881	$	698
Cost of goods sold, expenses and income taxes		814		805		580
Net income	$	153	$	76	$	118

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WARRANTY

12 Months Ended

Dec. 31, 2012

WARRANTY

13. WARRANTY

The following is a continuity of the Company’s warranty accruals:

	2012			2011			2010
Balance, beginning of year	$	76		$	68		$	75
Expense, net		43			46			32
Settlements		(46	)		(38	)		(37	)
Acquisitions [note 6]		17			—			—
Foreign exchange and other		4			—			(2	)
	$	94		$	76		$	68

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Stock-Based Compensation - Schedule of Restricted Stock Unit Programs Outstanding (Detail)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Equity Classified RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options outstanding, Beginning Balance	367,726	181,732	184,084
Granted	320,131	208,458	20,940
Dividend equivalents	1,895	2,022	946
Redeemed	(84,322)	(24,486)	(24,238)
Number of options outstanding, Ending Balance	605,430	367,726	181,732
Liability Classified RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options outstanding, Beginning Balance	29,806	34,242	12,272
Granted	15,364	4,150	26,000
Dividend equivalents	1,133	946	391
Redeemed	(26,204)	(9,532)	(4,421)
Number of options outstanding, Ending Balance	20,099	29,806	34,242
Liability Classified DSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options outstanding, Beginning Balance	198,446	186,348	153,013
Granted	37,456	22,669	40,954
Dividend equivalents	5,145	4,696	1,758
Redeemed	(34,124)	(15,267)	(9,377)
Number of options outstanding, Ending Balance	206,923	198,446	186,348
Release of restricted stock units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options outstanding, Beginning Balance	595,978	402,322	349,369
Granted	372,951	235,277	87,894
Dividend equivalents	8,173	7,664	3,095
Redeemed	(144,650)	(49,285)	(38,036)
Number of options outstanding, Ending Balance	832,452	595,978	402,322