Magna may build Chinese cars in Europe

Magna International is in talks to produce vehicles for Chinese brands in Europe as they expand in the region.

The supplier’s Magna Steyr contract manufacturing facility in Graz, Austria has some spare output capacity, according to Magna Europe President Uwe Geissinger.

“Whether we make them in Graz or a new facility depends on how the talks turn out,” he said in an interview.

The Canadian supplier has been producing cars for the Chinese market for BAIC at a joint-venture facility in the Asian country but will tread carefully when it comes to future partnerships.

“We are closely studying the financial standing of any new production partner,” Geissinger said.

Only one in 10 of new entrants in the market have the potential to succeed, he said.