Magna Steyr CEO Manfred Remmel wants a plant that can build 150,000 units a year.
There are multiple possibilities and locations, but each has specific conditions that must be met to make the risk worthwhile.
Remmel's primary goal is an assembly plant with annual capacity of about 150,000 units. Magna Steyr could build a plant or convert an existing facility.
The factory could be in North America or central Europe.
To fill the plant, Magna Steyr wants to build 50,000 units a year of three different models or 70,000 to 80,000 units of two models.
Before Magna Steyr builds the plant it must have at least two contracts for 50,000 units a year or one for 70,000 to 80,000 units.
The contracts need to be for two separate life cycles of six or seven years each.
Remmel doesn't say how far Magna Steyr is in negotiations with carmakers for new contracts that could lead to such a plant. But he did say Magna Steyr is talking with European, North American and Asian carmakers.
Remmel also can envision a less-automated Magna Steyr operation - probably in Southeast Asia - that could build 30,000 units a year of three models from kits.
You may e-mail Luca Ciferri at [email protected]