Report – BMW to stop Mini production at Magna Steyr in 2016 image

According to a report from the Kleine Zeitung the Germans from BMW will stop in 2016 the production of their Mini brand at their contract manufacturer from Austria, the Magna Steyr company.

The Kleine Zeitung also reported that BMW will move the production of the Mini Countryman and Mini Paceman that Magna Steyr currently builds to Mini’s factory in Oxford, England. Also, some of the manufacturing will be taken care by the ex-Mitsubishi NedCar factory in the Netherlands, where the Dutch group VDL should start Mini production this year.

Yesterday Magna Steyr’s parent, Magna International, also said yesterday in a statement it would continue its lucrative business with BMW through a new vehicle-manufacturing contract.

“The new production program would start following the end of production of the current Mini models Mini Countryman and Mini Paceman being assembled by Magna Steyr in Graz,” Magna said in the statement.

Still, no details about what vehicles from the BMW Group would be built under the new contract were given in the statement. The Kleine Zeitung reported that no particular BMW Group cars would be assigned to Magna Steyr, as the automaker will simply reserve capacity for models, as it needs due to sales demand. The paper also added the contract manufacturer could build high-sales models, which could definitely mean the BMW 5 series and the 3 series.

Besides the BMW contract, Magna Steyr has on its production lines models from Mercedes-Benz, the Mercedes G class and Mercedes SLS AMG, as well as the Peugeot RCZ.

Via Automotive News