BMWs Mini Countryman on the line at Magna Steyr (just-auto.com file photo)

BMW's Mini Countryman on the line at Magna Steyr (just-auto.com file photo)

Magna International on Thursday (30 January, 2014) said its Magna Steyr contract assembly unit in Graz, Austria, had secured a new contract with BMW.

The new deal will start when production of the current Mini Countryman and Paceman ends. According to just-auto's Product Life Database (PLDB), this will be in 2016. The more recently introduced (2012) Paceman is the three-door version of the five-door Countryman launched in 2010.

BMW also started assembling the Countryman for local sale at its plant in India from April 2013. CKD kit assembly at a Malaysian factory, which has for many years built BMWs, got under way the following June. Two months later, SKD assembly was added at a plant in Rayong, Thailand.

just-auto expects the Countryman and Paceman to be replaced by one model, a small crossover that would be more or less the twin of the next BMW X1. Both vehicles would use the group's UKL1 platform and be built by BMW Group, not outsourced to Magna Steyr. A plug-in hybrid (PHEV) version of the second generation model is also expected, for the US market, at least.

However, Magna did not provide model details, saying only it would provide more information about the contract later.

"This new contract with the BMW Group exemplifies our customer's  confidence in Magna Steyr to deliver world class manufacturing excellence and flexibility," said Magna Steyr & Magna International Europe president Günther Apfalter in a statement. "We are pleased to secure this contract which allows Magna Steyr to maintain its position as a leader in contract vehicle manufacturing."

Magna Steyr contracts with BMW date back to a deal to assemble the then-new X3 SUV from 2003 but the automaker now builds the successor model - launched in 2010 - in-house at Spartanburg and, starting in June 2011, from KD kits at its plant in Chennai, India, and, from January 2013, also at the KD plant in Malaysia.

Magna Steyr has built 250,000 Countryman units for BMW since the start of production in 2010.

Show the press release

Magna signs new manufacturing contract with BMW Group


GRAZ, Austria, Jan. 30, 2014 - Magna International today announced
 that its Magna Steyr operating unit will continue its collaboration
 with the BMW Group through a new vehicle manufacturing contract for its
 facility in Graz, Austria. The new production program would start
 following the end of production of the current MINI models MINI
 Countryman and MINI Paceman being assembled by Magna Steyr in Graz.
 Further information will be communicated at a later date.



"This new contract with the BMW Group exemplifies our customer's
 confidence in Magna Steyr to deliver world class manufacturing
 excellence and flexibility," said Günther Apfalter, President Magna
 Steyr & Magna International Europe. "We are pleased to secure this
 contract which allows Magna Steyr to maintain its position as a leader
 in contract vehicle manufacturing."



Magna Steyr has been a strategic vehicle assembly partner of the BMW
 Group since its first manufacturing contract for the BMW X3 which
 started in 2003. Currently Magna Steyr is manufacturing for the BMW
 Group the MINI Paceman and the MINI Countryman, the latter of which
 celebrated a milestone in 2013 with 250,000 vehicles produced since
 start of production in 2010.

Original source: Magna International