The assembly outsourcing contract that Karmann had been hoping to win was the BMW Mini SUV. This will be built by Magna Steyr in Austria, dashing hopes that jobs at Karmann could be saved.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.

Find out more


A BMW spokesperson told dpa-AFX that the contracted had been awarded to Magna Steyr, and that the company had been in talks with both Karmann and Magna.


BMW is expected to confirm details of the contract later today.


The Karmann works council had advised all workers that management was negotiating for a major vehicle assembly contract that could last for up to five years. The Mini SUV, codenamed Colorado, is expected to be produced from 2010 at a rate of 40,000 vehicles a year.


Magna Steyr has core expertise in four-wheel drive vehicle assembly. Karmann’s specialist area is cabriolets.


Karmann announced 1,770 job cuts last month, with further job losses if it did not win a major new vehicle assembly contract.

Just Auto Excellence Awards - Nominations Closed

Nominations are now closed for the Just Auto Technology Excellence Awards. A big thanks to all the organisations that entered – your response has been outstanding, showcasing exceptional innovation, leadership, and impact.

Excellence in Action
Continental has secured the Window Displays Innovation Award in the 2025 Just Auto Excellence Awards for its Window Projection solution, transforming side windows into dynamic, data-rich canvases. Discover how this compact projection technology and intelligent software are reshaping in-car UX and opening fresh revenue streams for OEMs and mobility providers.

Discover the Impact