Skip to main content
Sister Publication Links
  • Automotive News
  • Automotive News Europe
  • Automotive News Mexico
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • login
  • HOME
  • NEWS BY BRAND
    • Aston Martin
    • BMW
    • Daimler
    • Fiat Chrysler
    • Ford
    • General Motors
    • Honda
    • Hyundai
    • Mazda
    • Mitsubishi
    • Nissan
    • Subaru
    • Tata
    • Tesla
    • Toyota
    • Volkswagen
    • Volvo
    • Mini
    • Rolls Royce
    • Mercedes Benz
    • Smart
    • Alfa Romeo
    • Chrysler
    • Dodge
    • Ferrari
    • Fiat
    • Jeep
    • Lancia
    • Maserati
    • Ram
    • Lincoln
    • Buick
    • Cadillac
    • Chevrolet
    • GMC
    • Acura
    • Kia
    • Infiniti
    • Jaguar
    • Land Rover
    • Lexus
    • Audi
    • Bentley
    • Bugatti
    • Lamborghini
    • Porsche
  • News
    • Auto Shows
    • Photo Galleries
    • Automakers
    • Suppliers
    • Retail
    • Government Relations
    • Trade and Tariffs
    • Technology
    • Labour
    • Lawsuit challenges Trump's authority on steel, auto tariffs
      Automaker-supplier relationships take a hit
      Ghosn's ace for growth: Suppliers
      In-demand tech puts wary suppliers on guard, study finds
    • Ontario aims to replace GM with Magna, Martinrea or other in Oshawa
      FCA to idle Ontario minivan plant due to parts shortage
      Supplier Brose cutting 100 jobs in Ontario, report says
      Magna's Walker: Pair up to keep cars affordable
    • Kia dealer Benny Leung a true new-Canadian success story
      AutoCanada sues former CEO Patrick Priestner for $250M over dealership acquisitions
      Rolls-Royce names BMW exec its new sales VP for Americas
      How GM's Oshawa closure could affect sales, dealerships
    • Level 3 autonomous vehicles now allowed on Ontario roads
      Ford adds 149,652 vehicles in Canada to Takata airbag recall
      Honda wants recall notices to be part of registration renewals
      All wet: Rain could delay the arrival of self-driving future
    • A look at which automakers in Canada meet USMCA's 75% content rule
      Canada seeks Pelosi's support in push to lift U.S. metal tariffs
      How Canada's auto industry can take advantage of new trade deals
      Canada says it will stay out of U.S. ratification fight over new NAFTA
    • Vehicle screens go super-sized at CES as tech catches up
      All in a day's work
      Ford commits US$4 billion to autonomous vehicles, forms new subsidiary
      Massive data breach at Canadian company hits several automakers, report says
    • GM Canada says it will find 2,400 jobs for Oshawa workers
      FCA to idle Ontario minivan plant for 8 days, union says
      Unifor calls for boycott of GM vehicles if automaker closes Oshawa plant
      Canada blindsided by GM Oshawa closure, workers walk out in protest
    • Toronto Auto Show
  • Opinion
    • Blogs
    • Chevy's 2019 Blazer: More Camaro, less Equinox
      Trump's troubling definition of victory
      The 2019 Nautilus: Lincoln's Cadillac Super Cruise fighter?
      What Cadillac dealers can expect from Steve Carlisle
  • EVENTS, WEBINARS & AWARDS
    • 2018 Auto News Canada All Stars
    • Best Dealership To Work For
    • Canada Congress
    • Webinars
    • More women in dealerships is just plain good for business
    • VIDEO: Why Ford's Hinrichs is bullish on USMCA
      Ontario aims to replace GM with Magna, Martinrea or other in Oshawa
      Dealers told standalone stores 'difficult to remain profitable'
      Ford's Joe Hinrichs: Plant closures have 'cascading effects' on industry
  • +MORE
    • NEWSLETTERS
    • SUBSCRIBE
    • CLASSIFIEDS
    • CONTACT US
    • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. Canada
August 13, 2018 01:00 AM

N.A. auto plant for Magna Steyr?

Lindsay Chappell
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Magna Steyr's plant in Graz, Austria, is maxing out on capacity as the subsidiary continues to grow.

    Economic development officials constantly monitor the industry for the next automaker needing a North American assembly plant. But one global manufacturer might surprise them: Magna International.

    Magna CEO Don Walker is keeping his options open on building the company's first North American vehicle assembly plant, for its Magna Steyr subsidiary.

    Steyr has no plan in the works, Walker says, but he will build a plant here if customers give him cause.

    "We get a lot of requests," Walker told Automotive News of the idea of building vehicles in North America. "It's typically a unique vehicle, or a peak volume. But I think that if we had a plant here we'd be getting a lot of business."

    Steyr, a wholly owned subsidiary of the Canadian parts giant, is unique in automaking: a contract manufacturer that operates one vehicle assembly plant, in Graz, Austria. Graz builds the BMW 5 series, Jaguar I-Pace, Jaguar E-Pace and Mercedes-Benz G class. In June, the company said it will produce the redesigned BMW Z4.

    The plant is expected to turn out about 200,000 vehicles this year.

    Photo

    Walker: "We get a lot of requests."

    That is where North America emerges as a plant scenario: The Graz site is maxing out on capacity as Steyr continues to grow, Walker says. In April, Steyr inked a partnership to develop a next-generation electric vehicle architecture for Chinese automaker BAIC Motor Corp. Magna also partners with ride-hailing business Lyft on new-generation autonomous vehicles.

    "We're over capacity in the next couple of years as we continue to launch new vehicles," Walker says. "If we continue to get business over at Magna Steyr, then we would expand to a second location. It's a possibility that we continue to look at."

    North America is an option, as is China, he says.

    "But putting up a brand-new plant takes a lot of money," he says. "We'd need the commitment of two to three customers to build a plant."

    More than a decade ago, Magna discussed producing small-volume vehicles in the U.S. for unidentified customers.

    Walker says Magna knows of available brownfield plant capacity in North America — not just the possibility of greenfield investment.

    "We look at all options," he says. "If there's an available plant around, we'd consider it.

    "The biggest cost driver for an assembly plant is the paint shop. Is it capable? Can you modify it to meet specifications?

    "And logistics," he adds, musing over site considerations. "You almost always have to put in a new body shop and a new general assembly."

    Recommended for You
    Digital Edition
    Thumbnail
    View latest issue
    See our archive
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up today for our Weekly Newsletter, Daily Newsletter and Breaking News Alerts. We'll deliver the news you need to know straight to your inbox.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Subscribe Today

    An Automotive News Canada subscription includes 12 monthly issues – delivered in print to your doorstep, and digitally to your inbox – plus unlimited, 24/7 access to our website.

    Subscribe
    Connect With Us
    • Facebook
    • Twitter
    • Instagram

    Our Mission

    The Automotive News Canada mission is to be the primary source of industry news, data and understanding for the industry's decision-makers interested in Canada.

    Contact Us

    PO Box 243
    Station A
    Windsor, ON
    N9A 6K7

    1-877-812-1257

    Email Us

    Resources
    • About us
    • Contact Us
    • Digital Edition Archive
    • Advertise with Us
    • Reprints
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    Copyright © 1996-2019. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • NEWS BY BRAND
      • Aston Martin
      • BMW
        • Mini
        • Rolls Royce
      • Daimler
        • Mercedes Benz
        • Smart
      • Fiat Chrysler
        • Alfa Romeo
        • Chrysler
        • Dodge
        • Ferrari
        • Fiat
        • Jeep
        • Lancia
        • Maserati
        • Ram
      • Ford
        • Lincoln
      • General Motors
        • Buick
        • Cadillac
        • Chevrolet
        • GMC
      • Honda
        • Acura
      • Hyundai
        • Kia
      • Mazda
      • Mitsubishi
      • Nissan
        • Infiniti
      • Subaru
      • Tata
        • Jaguar
        • Land Rover
      • Tesla
      • Toyota
        • Lexus
      • Volkswagen
        • Audi
        • Bentley
        • Bugatti
        • Lamborghini
        • Porsche
      • Volvo
    • News
      • Auto Shows
        • Toronto Auto Show
      • Photo Galleries
      • Automakers
      • Suppliers
      • Retail
      • Government Relations
      • Trade and Tariffs
      • Technology
      • Labour
    • Opinion
      • Blogs
    • EVENTS, WEBINARS & AWARDS
      • 2018 Auto News Canada All Stars
      • Best Dealership To Work For
      • Canada Congress
      • Webinars
    • +MORE
      • NEWSLETTERS
      • SUBSCRIBE
      • CLASSIFIEDS
      • CONTACT US
      • DIGITAL EDITION