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Magna Steyr considering a US production plant – report

Austrian-based contract manufacturer Magna Steyr, a subsidiary of Canadian supplier Magna International, is reportedly looking to expand its footprint and open a production plant in the USA.

“We want to enter the US market. We are intensively looking for a location right now,” Magna Steyr vice president of sales and marketing Kurt Bachmaier told Automobilwoche, as reported by Automotive News.

Mr Bachmaier didn’t mention where the production plant might be, but reportedly ruled out the state of California.

The Austrian manufacturing company is reportedly looking at areas with lots of space, access to suitably qualified employees, and access to suppliers.

Magna Steyr is considering using how sunny and windy an area is as determining factors, as it wants to generate sustainable electricity.

“We want a climate-friendly plant,” said Mr Bachmaier.

Magna Steyr’s interest in an American production facility is likely related to Joe Biden’s recently-signed tax, climate, and healthcare law stipulating electric vehicles (EVs) must be built in the USA to qualify for subsidies.

Under the terms of the act, only 21 of the EVs sold in the US qualify for tax credits of up to US$7500. That’s less than 30 per cent.

Magna Steyr currents has a production plant in Graz, Austria and has a number of contracts with OEMs to manufacture vehicles on their behalf.

It currently builds the BMW Z4, Toyota Supra, Jaguar I-Pace, Jaguar E-Pace, and the Mercedes-Benz G-Class at its Austrian plant.

In November it will begin producing the Fisker Ocean electric SUV at its Austrian plant, which will feature CATL-supplied batteries.

Last year there were reports Apple had tapped Magna International and LG Electronics to build its elusive, and still not confirmed, car.

At the time a source familiar with the deal told The Korea Times contract details are still being discussed but Apple reportedly hopes to reveal a prototype of its electric autonomous vehicle in 2024.

Apple has reportedly since gone on to have talks with Toyota, alongside a range of South Korean companies.

Magna traces its roots to the late 1950s. In 1957, Austrian emigrant and entrepreneur Frank Stronach opened a tool and die shop in Toronto, known as Multimatic Investments Ltd.

The company was awarded its first automotive contract by General Motors, which commissioned it to produce metal brackets to hold visors for various Canadian market models in 1959.

Magna International obtained its current name from a subsequent merger in 1969 with publicly-listed defence contractor Magna Electronics Corporation.

In 1998 the company acquired Steyr-Daimler-Puch, which is now the Austrian subsidiary Magna Steyr, and its automotive manufacturing facilities.

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