Topic: X3 to be built in Spartanburg, S.C.,

[airbalancer]

I wonder if the price will go down by 6% once it is NA builted


May 17, 2007 04:30 AM
Magna International Inc. confirmed yesterday 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 Aurora-based auto parts company said yesterday.

Last year's X3 sales were 113,000. Magna reported total assembly revenue of $4.4 billion last year including other work.

"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," Magna said.

Shifting more production to the United States will help BMW hedge against fluctuation of the U.S. dollar versus the euro. The declining value of the dollar and the yen wiped 666 million euros ($902 million U.S.) from the Munich-based company's profit last year.

For Magna, production of the X3 supported the parts maker's ambition to build niche vehicles for customers in North America.

Magna, the only supplier to build entire cars, lost a bid this week to buy a stake in DaimlerChrysler AG's Chrysler unit.

[ovr50]

Magna can't have Chrysler, and now can't build the X3 in Austria.

Oh, oh, what will Belinda do?? 

OTOH, NOT getting Chrysler may be a good thing. It will be interesting to watch private money work on Chrysler - the UAW better be ready to bend over, and management heads will roll also once the merger festivities are over - probably starting next week. 

[safristi]

Magna no CARTA.................there's a HISTORIC BLOW....make us all planet of the Apes types THEN eh!!!....is that How aids started..the NRA boss boffin a babboon ..