BMW Group will end production of Mini vehicles at Austrian contract manufacturer Magna Steyr in 2016, when the current deal expires.
The Mini Countryman and Mini Paceman crossovers are currently built by Magna Steyr in Austria, but BMW wants to relocate production to Mini’s plant in Oxford, England, and the former Mitsubishi NedCar factory in the Netherlands. Operated by Dutch group VDL, the latter will start Mini production this year, according to a report from Kleine Zeitung.
However, Canada-based Magna International, the parent company of Magna Steyr, said in a statement that it would continue its collaboration with BMW through a new vehicle manufacturing contract.
“The new production program would start following the end of production of the current Mini models Mini Countryman and Mini Paceman being assembled by Magna Steyr in Graz. Further information will be communicated at a later date,” reads Magna’s statement.
According to the aforementioned report, Magna Steyr will no longer be assigned to particular BMW Group cars but will be requested to reserve capacity for various models depending on demand. The Graz plant would likely build high-volume models like the BMW 3-Series and 5-Series.
The paper also said the agreement is likely to include an annual output of more than 100,000 vehicles over six to seven years.
Magna Steyr also builds the Mercedes-Benz G-Class and the body of the SLS AMG, as well as the Peugeot RCZ.
By Dan Mihalascu
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