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China's electric giants are pushing into Graz: Magna increases production!
Magna Steyr in Graz is expanding its production using the SKD method for Chinese car brands in order to avoid EU tariffs.
China's electric giants are pushing into Graz: Magna increases production!
A brilliant feat in automobile production! The Graz Magna factory is facing a strategic turning point as it is close to receiving assembly orders from two major Chinese brands, Xpeng and GAC. This is a particularly interesting collaboration like this Small newspaper reported. By using the SKD method (Semi Knocked Down), prefabricated parts are delivered from China, which are then completed in Graz. This approach not only helps manufacturers to avoid EU customs duties, but also enables them to test their first market opportunities in Europe with low investments in small series.
This development comes at just the right time for Magna, as the company has been struggling with a decline in production figures in recent years. Loud Vienna.at Last year, assembly only reached 71,900 vehicles, a significant decline compared to 105,100 the year before. On top of that, major manufacturers such as Jaguar and, in the future, BMW and Toyota are pulling out, while the British start-up Ineos ended its planned collaboration. In this tense environment, the partnership with Xpeng and GAC could provide a much-needed lifeline for Magna and potentially save jobs.
Production under pressure
Nevertheless, the production situation remains tense, as the high wage and production costs in Austria represent a challenge. Despite these hurdles, Magna has an excellent reputation in the automotive industry, particularly in China, where the company has operated successfully for two decades. However, the challenge is to reduce unit costs to compete with other manufacturers. Magna therefore plans to expand the partnership by acquiring additional complete vehicle projects. Politically, it is a hot potato, as Europe is in the Chinese sights as an important market for the comprehensive announcement of new electric vehicles.
With a lively development program – including for Volkswagen – Magna could ultimately emerge stronger from these difficult times. While European car manufacturers are struggling with sales crises, looking to China seems to be the key to stabilization.