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Magna, BMW ink new Austrian production deal

A worker assembles an engine at the Magna Steyr factory site in Graz.

Herwig Prammer/Reuters

Magna International Inc. said it has reached a deal with BMW AG to continue vehicle production for the Germany-based auto maker at Magna's assembly plant in Graz, Austria.

The Aurora, Ont.-based auto parts giant will assemble a new vehicle for BMW when production of the Mini Countryman and Mini Paceman is halted.

Those two vehicles are sold by BMW's Mini division, but are assembled at Magna's Steyr assembly facility.

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Magna has collaborated with BMW on vehicle assembly since the BMW X3 went into production in Graz in 2003. Production of that crossover utility vehicle is now down by BMW itself.

The new contract allows Magna's Steyr division "to maintain its position as a leader in contract vehicle manufacturing," Gunther Apfalter, president of Magna International Europe, said in a statement.

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About the Author
Auto and Steel Industry Reporter

Greg Keenan has covered the automotive and steel industries for The Globe and Mail since 1995. He also writes about broader manufacturing trends. He is a graduate of the University of Toronto and of the University of Western Ontario School of Journalism. More

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