What?
Austria-based contract manufacturer Magna Steyr is in talks with several Chinese automakers regarding the localization of electric vehicle (EV) production in Europe. These discussions come amidst potential European tariffs on Chinese imports and Magna Steyr’s need to fill assembly line gaps left by the paused production of the Fisker Ocean SUVs.
Why does it matter?
As Chinese automakers seek to establish a presence in the European EV market, partnering with Magna Steyr could provide them with local production capabilities to potentially avoid impending tariffs. Magna Steyr’s reputation for quality manufacturing, including for brands like Mercedes-Benz and Jaguar, makes it an attractive partner for Chinese OEMs expanding into new markets like Europe. The ongoing discussions highlight the growing interest in localized production to navigate trade uncertainties and increase market accessibility.
How is it going to shape the future?
Through potential collaborations with Chinese automakers, Magna Steyr could play a significant role in the production and distribution of EVs in Europe. By leveraging its manufacturing expertise and available production capacity, Magna Steyr aims to support Chinese OEMs in meeting the demand for EVs in the European market. As trade tensions between regions continue to influence global commerce, establishing localized production facilities could facilitate smoother market entry and growth for both European and Chinese automotive industries, paving the way for increased EV adoption and market competitiveness.