Magna Steyr: Graz Stark meets the decline in production

Magna Steyr: Graz Stark meets the decline in production

In the third quarter of 2024, the car supplier Magna recorded considerable declines in vehicle production, especially at the Graz plant. The company's sales were $ 10.3 billion, which corresponds to a decrease of four percent compared to the previous year. As the main reason for this negative development, a falling production worldwide is cited in light commercial vehicles.

A look at the first three quarters shows that Magna implemented a total of $ 32.208 billion, which is a hardly any significant deviation at the same period in the previous year. Nevertheless, the adjusted EBIT, the operational result, went back slightly, which indicates increased production costs. Swamy Kotagiri, CEO of Magna International, explains this development in a published explanation.

decline in vehicle production in Graz

The precarious location in Graz shows that only 56,400 vehicles were built in the first three quarters - in the same period there were still 83,700. This corresponds to a decline of a third and reflects the challenges with which Magna Steyr is faced.

In comparison of the last quarters, the decline is also alarming. In the third quarter of 2024, the Graz plant delivered only 15,500 vehicles, while 22,900 were still in the same period of the previous year. An essential factor for this decline is the fiasco around the US E-car maker Fisker. After Fisker's bankruptcy, production in Graz had to be discontinued, which led to a dramatic decline in sales in the overall vehicle production - from 4 billion euros to EUR 3.48 billion by the end of September.

The effects of the fisker bankruptcy

Despite the challenges that the Fisker bankruptcy brought with it, Magna is still financially connected to the company. In the third quarter, $ 196 million in other income from the previously billed Fisker shops were booked. However, there are risks, since Magna is still subject to contractual obligations and possible claims by suppliers.

The renovation plan for the Austrian Fisker Society has been legally confirmed, but in the USA there is still a liquidation process for the parent company Fisker Inc. The connection between Magna and Fisker could also result in legal and financial difficulties, especially with regard to claims from third parties in terms of guarantees and recalls. In the quarterly report, it is emphasized that the possible effects of these requirements are not yet fully assessed.

How the situation at Magna Steyr will develop remains to be seen. The coming months should be decisive for how the production figures and the financial situation of the company will be. For a detailed view of the case, See the report on www.kleinezeitung.at .