Magna Steyr eyes U.S. for 'climate-friendly' plant

Editor’s note: An earlier version of this story incorrectly described where final assembly of EVs must take place for a vehicle to qualify for U.S. tax credits. Final assembly must occur in North America.

Magna Steyr, the Austria-based contract manufacturer owned by Canada's Magna International Inc., is considering opening a plant in the U.S.

"We want to enter the U.S. market. We are intensively looking for a location right now," Magna Steyr's vice president, Kurt Bachmaier, told Automotive News affiliate Automobilwoche.

Bachmaier did not disclose where Magna Steyr might build its plant, but said the company is looking at areas that have suitably qualified employees, access to suppliers and plenty of space.

The company will also choose a site based on how windy and sunny it is because it intends to generate sustainable electricity.

“We want a climate-friendly plant,” Bachmaier said.

He said California has been ruled out as a potential site.

President Joe Biden has signed a sweeping climate, tax and healthcare measure into law that provides subsidies for electric vehicles, but has stipulated that the EVs must be built in the U.S.

Under the terms of the act, about 20 electrified models will qualify for EV tax credits of up to $7,500. However the act ends credits for about 70 percent of the 72 models that were previously eligible, according to the Alliance for Automotive Innovation, an industry trade group.

Magna Steyr currently builds the BMW Z4, Toyota GS Supra, Jaguar I-Pace, Jaguar E-Pace and Mercedes G-Class models at its plant in Graz, Austria.

Production of Fisker’s Ocean full-electric SUV will be added in November.

Magna Steyr for many years has considered establishing a contract assembly plant in North America. Speculation emerged last year that the company could build the long anticipated Apple car.

Automotive News Europe contributed to this report