Tuesday, December 18, 2007

GERMANY: Karmann loses out to Magna Steyr

GERMANY: Karmann loses out to Magna Steyr

5 December 2007 Source: just-auto.com editorial team

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.

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.
Article tags: Magna Steyr, BMW, MINI, outsourcing

GERMANY: Mini SAV to be built by Magna Steyr

5 December 2007 Source: just-auto.com editorial team

The new Mini Sports Activity Vehicle (SAV) will be built by Magna_Steyr Fahrzeugtechnik in Graz, Austria. It had been widely predicted that Magna would win the outsourced Mini SAV.
The vehicle concept, devised by Mini Design and BMW Group engineers, has been entrusted to Magna Steyr Fahrzeugtechnik for series development and for later production.
By outsourcing production of the Mini SAV, BMW Group is able to increase flexibility within its own production network. This allows the lead plant for Mini production in Oxford to fully direct its mid-term capacity of 260,000 units on the Mini, Mini Convertible and Mini Clubman.
Frank-Peter Arndt, Head of Production and Member of the Board of Management of BMW AG, explains the advantages: "By using Magna Steyr for production, we are able to give our own Production Network some breathing space to respond fully to market needs. This solution will also allow us to bring the Mini SAV to the market as quickly as possible."
Speaking about the new contract, Siegfried Wolf, co-CEO of Magna_International, sees this as a "huge recognition of the work that Magna Steyr has achieved so far through its partnership with BMW Group. Above all, I'm delighted for our employees, as this will allow us to set another milestone in our long-running and successful cooperation with BMW Group. As we have done before, we will work on this vehicle programme with our fullest commitment to ensure that we meet BMW Group's high expectations."
BMW Group will design the supply contracts with the suppliers whilst Magna will be responsible for call-offs during series production.
See also: GERMANY: Karmann loses out to Magna Steyr

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