Magna International has revealed that it has been informed by Nissan that the OEM intends to assemble its future premium compact Infiniti vehicle in-house. This overturns the announcement in May 2012 that the two companies had signed a memorandum of understanding relating to assembly of the vehicle by Magna Steyr on a contract manufacturing basis from 2014.
The May announcement indicated that Austria-based Magna Steyr was already currently “intensively engaged on an engineering assignment associated with the plan.” It added that both companies were currently finalising details of manufacturing and supply agreements.
Andy Palmer, Nissan Executive Vice President who is responsible for Infiniti, commented at the time: “This new vehicle represents a significant opportunity for the Infiniti brand to reach new consumers and grow in key markets such as western Europe. We are pleased to be working with Magna Steyr to realise this important product.”
Günther Apfalter, President of Magna Europe and Magna Steyr added at the same time: “We are very delighted to sign this first vehicle assembly agreement with Infiniti. It is an important milestone to further diversify Magna Steyr’s customer portfolio as a supplier of engineering services and complete vehicle assembly.”
Following the new announcement, Apfalter has said: “Although we would have liked to see the assembly of Infiniti’s new compact vehicle realised at Magna Steyr, we are pleased that Magna remains an important supplier for Nissan Motor Co. Ltd. Nissan’s project team has affirmed their willingness to work with Magna Steyr if future contract assembly opportunities arise, and we look forward to supporting them as needed.”
Magna’s complete vehicle assembly revenue declined 11.4% year-on-year in Q2 2012 to US$645m (US$728m), while vehicle assembly volumes (at Magna Steyr) declined 6.1% to 33,064 (Q2 2011; 35,224), largely as a result of a decrease in output of the Peugeot RCZ and the Aston Martin Rapide, the latter ceasing production in Q2 2012. These were only partially offset by an increase in assembly volumes for the Mini Countryman and the Mercedes-Benz G-Class.
