The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: On the Getrag write-down, all the -- Don, in your commentary, all the issues that you talked about that are negatively impacting Getrag. I mean
there's nothing new there. You've been talking about those issues for a number of quarters. So I'm just wondering, what has changed since Q2 in
terms of the outlook that's caused you to take the write-down now versus previous periods?
Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: Okay. I understand that. And how do you feel about -- like how does Magna management feel about the DCT product? I'm just wondering was the
product generally engineered in Germany for the China market? And I know I'm speaking in generalities, but I'm just wondering. The Germans
tend to apply very high level of engineering, and I'm just wondering if you feel the product portfolio is overengineered for the China market and
you need to reengineer the product so it's more suitable for that market.
Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: Okay. And then lastly, like, in your commentary at the beginning of the call, you referred to this BMW contract, DCT contract, in Europe. That sounds
like a big win. You're a little bit vague on how big of a contract. Can you somehow quantify what are the annual run rates? I wasn't too sure what
Don was saying. Was he saying this was the biggest DCT award that you've ever been awarded? Or can you just kind of put the magnitude of this
contract in some kind of context?
Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst
: Maybe just on the guidance, just maybe help us just bridge the gap between the sort of the drop in the earnings guidance and the free cash that
we're staying at the $2 billion at the midpoint.
Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay. I guess -- and I guess, just further on that, I think year-to-date proceeds from disposition, $169 million, is that included in your calculation?
Or is that sort of excluded from the $2 billion?
Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay. Just maybe on the write-down, Vince, I didn't fully follow everything you said. But I guess the point it's a pretty material sort of number. So
just sort of, I guess, trying to think of the context of the size of the carrying value sort of pre write-down of that asset. Just trying to I guess,
contextualize the size of this write-down.
Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay. That's actually quite helpful. Maybe just one last one. Just a point of clarification, I think there was a $27 million impairment in the Electronics
division. Just curious, is that sort of adjusted for in the equity income -- or not equity income, sorry, adjusted for in your segmented operating
income? It didn't seem like it was, but I wasn't sure.
Question: James Albert Picariello - KeyBanc Capital Markets Inc., Research Division - Analyst
: So for ADAS spending, you've quantified in the past what that incremental spend is, which I assume is on track with your prior expectations. But
just in general terms, can you talk about how this year's launch-related engineering and testing investments potentially trend over the next few
years? I mean, I believe you're working on 3 key programs right now. If nothing else hits in the near term in terms of an additional program, does
this spend ramp-down in 2020 and beyond?
Question: James Albert Picariello - KeyBanc Capital Markets Inc., Research Division - Analyst
: Understood. Okay. And then just -- it sounds as though you're beginning to supply electric drive systems for VW's MBP platform in China based on
what's out there. Can you provide any color on that relationship? How volumes are trending? And what your expectations are regarding that?
Question: James Albert Picariello - KeyBanc Capital Markets Inc., Research Division - Analyst
: Any color on potential timing?
| 
