China’s Guangzhou Automobile Group (GAC) has begun production of its AION V electric sport utility vehicle (SUV) at Magna’s manufacturing plant in Austria.
The move is part of a vehicle assembly programme as the Chinese carmaker seeks to scale up local electric vehicle (EV) production in Europe.
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The partnership extends beyond assembly to cover supply and sales.
GAC International president Wei Haigang said: “Europe is a vital market in GAC’s global development.
“Partnering with Magna enables us to bring locally assembled electric vehicles to European customers that reflect GAC’s values of smart technology, sustainability and craftsmanship.”
The AION V model will be built at Magna’s southern Austria plant in Graz, which can produce combustion, hybrid and EVs on shared lines.
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By GlobalDataThe site has been involved in the development of more than 40 vehicle models and has built over four million vehicles globally.
Magna complete vehicles president Roland Prettner said: “This collaboration reflects the trust automakers place in Magna’s expertise. Our Graz facility provides flexibility and capacity, allowing OEMs like GAC to localise production efficiently and confidently.”
The AION V has already been introduced in Finland, Poland and Portugal.
GAC intends to reach further European markets by building additional partnerships and establishing service and sales networks across the region.
The move follows a similar arrangement between Magna and another Chinese EV maker, Xpeng.
In September, Xpeng launched its first European production line at the Graz facility, with its G6 and G9 SUVs already in series production there.
Beyond Europe, GAC has also set out its ambitions in Australia.
The company recently held a brand and model launch event in Sydney to present its Australia Local Strategy—”GAC: Growing Australian Confidence”—which it describes as the regional application of its global “One GAC 2.0” plan.
GAC says that, through long-term strategic investments, it intends to ‘deeply integrate into the Australian market’ and views the launch as a milestone in its expansion across Australia and the wider South Pacific.
At the Sydney event, GAC simultaneously unveiled three global models for the market: the AION V, the M8 PHEV—described by the company as the first plug-in hybrid MPV in Australia—and the EMZOOM.
