Production of Mini cars at Magna Steyr to stop in 2016

Article by Anita Panait, on February 3, 2014

BMW Group will stop building Mini cars at Magna Steyr in 2016, according to a report by Kleine Zeitung. While Magna Steyr currently produces the Mini Countryman and Mini Paceman, the production will be shifted to Mini's Oxford site in England, and the former Mitsubishi NedCar plant in the Netherlands via VDL.

Magna International said in a statement that it will continue its cooperation with BMW via 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," the parent said in the statement.

The statement, however, did not provide details of which BMW models Magna Steyr will produce under the new contract.

According to The Kleine Zeitung, Magna Steyr will not be assigned particular BMW models but will reserve capacity for various vehicles depending on demand. The paper added that Magna Steyr would likely produce high-volume models like the BMW 5 series and the 3 series.

The new agreement will likely include annual production of over 100,000 vehicles over six to seven years. Mini cars saw its global sales gain 1 percent in 2013 to a record 305,030. Magna Steyr also produces the Mercedes G class and Mercedes SLS AMG body, as well as the Peugeot RCZ. [source: automotive news - sub. required]

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