BMW reportedly has not yet decided to take back from Magna Steyr construction of future versions of its X3 sport utility vehicle and shift some output to the United States.

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“The decision about the production location of the X3 has not been made. We continue to be very happy with the co-operation with Magna Steyr Fahrzeugtechnik,” a BMW spokesman told Reuters in response to an Automotive News Europe (ANE) report – citing supplier and company sources – saying BMW would build the next X3 by itself in Germany and the United States or just in the United States.


In return, the paper added, BMW could offer Magna Steyr a contract to make a two-door sports version of the X3 or another niche model.


Magna Steyr declined to comment to the news agency.


Automotive News Europe noted that the X3 has been a hit for BMW since it was launched two years ago, prompting the company to boost planned production to a peak of 160,000 units a year when the next generation arrives in 2010.


According to Reuters, Automotive News Europe quoted a source close to the programme as saying BMW was leaning toward building one-third at its US plant in Spartanburg, South Carolina [which builds the larger X5 SUV], and two-thirds in Regensburg, Germany.


The report said making more cars in the US market could help reduce BMW’s exposure to a weak dollar.


Last year, the automaker sold 34,746 X3s in North America and 66,815 units in Europe, according to ANE.

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