Magna confirms loss of BMW X3 sport utility production contract in Austria

TORONTO (CP) _ Magna International Inc. (TSX:MG.A) confirmed Wednesday the pending loss of its lucrative BMW X3 sport utility production contract in Austria.

BMW will begin in-house assembly of the X3 in Spartanburg, S.C., after production of the vehicle’s current generation ends at Magna’s plant in Graz, Austria, the Canadian-based auto parts company said Wednesday.

The Globe and Mail says losing all X3 production could cost Magna more than US$2 billion in revenue, based on last year’s vehicle sales of 113,000. Magna reported assembly revenue of $4.4 billion last year.

“While end of production for the program is at the discretion of BMW, Magna Steyr currently expects BMW X3 production to end in 2010,” the firm said in a release. “We are currently a significant supplier to BMW’s Spartanburg facility.”

Magna has been the sole production source of the BMW X3 since it began producing the vehicle in 2003. BMW X3 production represented about 45 per cent of total vehicles assembled at Magna Steyr last year.

“We are in discussions with customers about future potential assembly opportunities for our Graz facility,” the firm said.

Magna has about 83,000 employees, 235 factories and 62 product development and engineering centres in 23 countries.

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Orlando Motors Sport üzerinde şu anda okumakta olduğunuz 'Magna confirms loss of BMW X3 sport utility production contract in Austria' isimli yazı 18 Mar 2008 tarihinde, saat: 15:02 'de admin tarafından gönderilmiş.

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