VIENNA -- The Austrian unit of Canadian automotive supplier Magna International Inc said on Tuesday it may build a new production facility as rumors fly that it may get a new contract from BMW.
"We are considering it (building a production plant)," Magna Steyr spokesman Daniel Witzani said.
"We have reached the full capacity at our facilities in Graz and building a new production facility is a logical step ahead in our expansion," Witzani added.
He declined to give further details or a time frame regarding any future construction.
Witzani also refused to comment on an article in the Austrian daily newspaper Der Standard citing rumors that Magna Steyr might get a contract from German automaker BMW to produce its new sports wagon.
"It is our company policy never to discuss publicly any possible contracts or talk about the status of ongoing negotiations," Witzani said.
BMW's chief executive told Reuters in a recent interview that the firm would decide by the end of next year whether or not it would produce the sports wagon.
On Monday, Magna Steyr denied that DaimlerChrysler's U.S. arm the Chrysler group would shift production of the Jeep Grand Cherokee from Austria.
It was reacting to an Automotive News report that quoted Chrysler's chief executive as saying the dollar's weakness against the euro would prompt it to shift at least some car production -- including the Grand Cherokee -- to North America.
"Magna Steyr will assemble the Jeep Grand Cherokee in Graz as agreed into 2009, thus beyond a model change-over," it said in a statement, adding that DaimlerChrysler had confirmed to it that no such change was planned.
It added it was in talks with DaimlerChrysler about future output of the Chrysler Voyager minivan, which is also being made in Graz under a deal to expire at the end of 2006.