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BMW contract for Magna Steyr

25. October 2016

BMW has awarded the contract to build the new 5 Series to Graz’s Magna Steyr, with  production due to commence in 2017.

Magna Steyr is set to produce BMW’s new 5 Series limousines in its Austrian plant in Graz. Manufacturing is scheduled to begin in 2017, marking the latest chapter in Magna Steyr’s 15-year partnership with the luxury car manufacturer. The new contract underscores the faith placed by the BMW Group in Magna Steyr’s ability to deliver superb quality in automobile production. The contract is based upon what is known as ‘split production’, whereby the BMW factory in Dingolfing and Magna Steyr will share manufacturing duties for the vehicles.

BMW Group and Magna’s successful partnership began in 2001 with the development of various production lines: the first BMW built by Magna Steyr in Graz rolled off the assembly line in 2003, followed by the MINI Countryman and the MINI Paceman, which have been built in Austria since 2010 and 2012 respectively. Production of the two MINI models is coming to a close and will be replaced with manufacture of the new BMW 5 Series.

The new deal with BMW, as well a new contract from Jaguar Land Rover and the extension of the contract to build the Mercedes G Class, mean that some 200,000 vehicles will be rolling off the Austrian production lines from 2018. That is double the current number, a fact which should lead to the creation of some 3,000 new jobs over the next two years.

Magna Steyr is part of Magna International, a leading automobile supplier with a global footprint operating 309 assembly plants and 99 manufacturing development, construction and sales facilities in 29 countries. Magna Steyr has a wealth of expertise in vehicle development and contract manufacturing. The company has its headquarters in Austria, with additional facilities in Germany, Italy, France, Sweden, the USA, China, India, Japan and Korea.