FRANKFURT -- BMW will outsource some production of the 5-series range to Magna Steyr in Graz, Austria, after the contract manufacturer stops building the Paceman and Countryman for sister brand Mini at the end of this year, a German report said.
Magna Steyr will build between 50,000 and 70,000 next-generation 5-series models a year, Automobil Produktion reported, citing company sources. No decision has yet been reached on which variants of the 5 series will be built in Austria, the report added.
The current 5 series is built at BMW's plant in Dingolfing, southern Germany, and is the brand's No. 2 seller globally after the 3 series. Last year BMW sold 373,053 5-series variants and 480,214 units of the 3-series family, according to the automaker's annual report.
“We don't comment on these reports,” a BMW spokesman told Automotive News Europe when asked about the deal. The spokesman also declined to comment on where the company intends to move future output of the Mini Countryman.
Mini will drop the Paceman as it slims its lineup to five models in a bid to boost profitability.
Magna Steyr said last year it had signed a contract to build BMW Group vehicles, without naming which models it would manufacture. The company also declined to comment on the report.
Last week, Jaguar Land Rover said Magna Steyr would build some JLR vehicles without naming the models.
Magna Steyr also makes the Mercedes-Benz G class and Peugeot RCZ in Graz, according to the Automotive News Europe vehicle assembly plant map.
