July 20, 2007 -- Magna International is rumoured to be in talks with BMW over production of a Mini-branded sports-utility vehicle (SUV) at its assembly plant in Graz (Austria), according to a Reuters report. Dubbed the Mini Colorado, the new model would potentially provide 65,000 units of output to the plant, which recently lost future production of the BMW X3 and, yesterday, production of the Chrysler 300 model, which will return to Canada. Volkswagen ( VW) is also rumoured to be in talks with Magna over the assembly of 20,000 roadsters at the Graz plant.
Magna spokeswoman Tracy Fürst refused to confirm the rumours, saying that, "Reports of potential future BMW and Volkswagen assembly programmes are speculative and, as a matter of policy, we will not comment on them."Significance: Magna Steyr's Graz plant is in danger of being severely under-utilised following the loss of the X3, which accounted for 45% of the plant’s volumes, and the Chrysler 300, which although made in much lower volumes may signal an end to the Jeep assembly contract as well. Magna Steyr would be a logical option for the construction of a new Mini SUV as its plant has a long and proven history of building specialist 4x4s.
Source: Global Insight Daily Analysis
Source: Factiva
