Automotive News Europe
August 13, 2018 06:01 CET
Economic growth officials constantly guard a attention for a subsequent automaker wanting a North American public plant. But one tellurian manufacturer competence warn them: Magna International.
Magna CEO Don Walker is gripping his options open on building a company’s initial North American car public plant, for a Magna Steyr subsidiary.
Steyr has no devise in a works, Walker says, though he will build a plant there if business give him cause.
“We get a lot of requests,” Walker told Automotive News Europe sister announcement Automotive News of a thought of building vehicles in North America. “It’s typically a singular vehicle, or a rise volume. But we cruise that if we had a plant here we would be removing a lot of business.”
Magna Steyr, a unconditionally owned auxiliary of a Canadian tools giant, is singular in automaking: a agreement manufacturer that operates one car public plant, in Graz, Austria. Graz builds a BMW 5 series, Jaguar I-Pace, Jaguar E-Pace and Mercedes-Benz G class. In June, a association pronounced it will furnish a redesigned BMW Z4.
The plant is approaching to spin out about 200,000 vehicles this year.
That is where North America emerges as a plant scenario: The Graz site is maxing out on ability as Magna Steyr continues to grow, Walker says. In April, Magna Steyr inked a partnership to rise a next-generation electric car design for Chinese automaker BAIC Motor. Magna also partners with ride-hailing business Lyft on new-generation unconstrained vehicles.
“We are over ability in a subsequent integrate of years as we continue to launch new vehicles,” Walker says. “If we continue to get business over during Magna Steyr, afterwards we would enhance to a second location. It’s a probability that we continue to demeanour at.”
North America is an option, as is China, he says.
“But putting adult a code new plant takes a lot of money,” he says. “We would need a joining of dual to 3 business to build a plant.”
More than a decade ago, Magna discussed producing small-volume vehicles in a U.S. for unclear customers.
Walker says Magna knows of accessible brownfield plant ability in North America — not only a probability of greenfield investment.
“We demeanour during all options,” he says. “If there’s an accessible plant around, we would cruise it.
“The biggest cost motorist for an public plant is a paint shop. Is it capable? Can we cgange it to accommodate specifications?
“And logistics,” he adds, oblivious over site considerations. “You roughly always have to put in a new physique emporium and a new ubiquitous assembly.”
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