GRAZ, AUSTRIA – Magna International has won another manufacturing contract from BMW Group and will begin building the new 5 Series sedan sometime next year.
Production will take place at Magna’s contract vehicle assembly facility in Graz, Austria and be split with BMW’s manufacturing plant in Dingolfing, Germany.
This agreement is the latest in a strengthening strategic partnership between Magna and BMW Group that started back in 2001. Magna started manufacturing the BMW X3 in 2003, followed by the MINI Countryman in 2010 and the MINI Paceman in 2012.
The new BMW 5 Series will succeed the two MINI vehicles.
With new business awards from BMW and JLR starting production in 2017, and a contract extension on the Mercedes-Benz G-Class, Magna’s Graz facility is expected to reach approximately 200,000 vehicles per year by 2018.
“We are proud to continue our longstanding partnership with the BMW Group,” says Günther Apfalter, president of Magna Europe and Magna Steyr.
“The new collaboration emphasizes our customer’s continued trust in our contract manufacturing capability and our unmatched leadership position in this area.”
Magna boasts 309 manufacturing operations and 99 product development, engineering and sales centres in 29 countries. Magna’s stock price closed at $51,77 a share Wednesday before the BMW announcement was made.