Magna Steyr said it’s willing to build vehicles in the U.S. for any automaker that thinks it needs U.S. production.
But, it says, probably not at Mitsubishi’s plant in Normal.
Magna Steyr is eager to set up a U.S. venture for European automakers faced with exporting cars to the U.S. at a time when a strong euro and weak dollar eat up potential profits on vehicles exported here.
August Hofbauer, executive vice president of Magna Steyr, the subsidiary of Magna International, Canada’s largest supplier of automotive parts and components, announced plans for the company’s expansion into the U.S. at a briefing with the media in Detroit this week.
“Magna Steyr hopes to build its business in the U.S. like it has in Europe,” said Magna International President Mark Hogan. “It’s telling companies not building in North America, especially those in Europe, to look at a venture because of the strong value of the euro versus the dollar.”
Magna Steyr builds 240,000 vehicles annually for General Motors, DaimlerChrysler and BMW at a plant in Graz, Austria. Hofbauer said the Graz plant is at capacity, which is behind the interest in expanding into the U.S. market.
“Under the right circumstances and with the right volume from several original equipment makers, Magna Steyr would consider putting up an assembly plant in the U.S. or looking into [an existing] plant,” Hogan said.
However, Hogan added that the latter option is less likely “because you’d have to assume legacy costs, work rules and the existing unions represented at the plant rather than start from scratch with a new plant.”
Such considerations probably would rule out the Mitsubishi plant. There were reports last week that Magna Steyr met with Mitsubishi officials in January regarding the plant. Mitsubishi discounted talk that the plant was for sale.
