Jaguar ending crossover output at Magna Steyr in Austria

JLR's arrangement with contract manufacturer Magna Steyr is ending in December, when Magna’s factory in Austria stops production of the Jaguar I-Pace midsize electric and E-Pace compact crossovers.

The end of production for the two models comes as Jaguar pivots from being a "mass premium" brand and adopts a more luxury position with the launch of three all-electric models starting in 2025.

Jaguar announced the contract with Magna Steyr in July 2015. Jaguar told investors on June 19 that it would end production of five "zero profit" models to prepare for the transition, including the two utility vehicles.

The end of the JLR contract could leave Magna Steyr short of work after it halted production of the Fisker Ocean electric crossover when the American startup filed for bankruptcy in June.

Magna Steyr, owned by Canada’s Magna International, faced another setback in June when Ineos said it was delaying the planned Fusilier electric SUV, which is due to be built in the Graz, Austria, factory.

Magna has been in talks with Chinese manufacturers to replace lost customers.

"Over the past 12 months, we have seen very strong activity from all of the Chinese OEMs who are contacting us and who want and need to localize," Magna Steyr President Roland Prettner said at a media event at the Graz plant in May.

Chinese EV makers are dealing with higher tariffs for EVs exported to the European Union after the European Commission judged they were being unfairly supported by state subsidies.

Localizing production of Chinese EVs in the EU at plants such as Magna's would avoid those additional tariffs, which the EU is likely to make permanent in November. Magna Steyr also produces cars in China for BAIC Group through a joint venture. 

Magna Steyr's Graz factory builds the Mercedes G-Class off-roader, BMW Z4 roadster and the related Toyota Supra coupe. Production of the BMW 5-Series ended in 2023. 

Previous models built at the Graz facility include the Peugeot RCZ Coupe (up to 2015), Mini Countryman and Paceman SUVs (both up to 2016), and Aston Martin Rapide (up to 2012).

The plant built 112,217 vehicles in 2022, according to Magna. The factory's most recent production peak was in 2019, when it produced 168,822 cars.

Magna began building the E-Pace in 2017 after JLR was struggling to find capacity in its own plants. The I-Pace started production a year later. JLR has since opened a factory in Nitra, Slovakia, and has shifted to a lower-volume, higher-price strategy.

Jaguar stopped production of the XE and XF sedans and F-Type sports cars in May. The brand said it will continue selling stock after the end of production, as well as operating service centers to maintain combustion models.