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Nissan scraps plan for Magna to assemble new Inifiniti model

A Magna Steyr logo is pictured in Graz June 3, 2009.


Nissan Motor Co. Ltd. has changed its mind and scrapped a plan to have Magna International Inc. assemble a model for its Infiniti luxury brand, Magna said Friday.

Nissan and Magna announced earlier this year that the Japan-based auto maker had tapped Magna to assemble a compact car.

"Although we would have liked to see the assembly of Infiniti's new compact vehicles realized at Magna Steyr, we are pleased that Magna remains an important supplier for Nissan Motor Co. Ltd.," Gunther Apfalter, president of Magna Steyr, said in a statement Friday.

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The parts maker's Magna Steyr operation in Graz, Austria, assembles vehicles under contract for several auto makers, including Mercedes-Benz and BMW AG, but the Infiniti contract would have been its first to assemble vehicles for a Japan-based auto maker.

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