GRAZ, Austria - Magna International will supply steel stampings for Chrysler Voyagers and Jeep Grand Cherokees built in Graz, Austria, beginning next year.
Magna will build a stamping plant within 50km of Graz to make possible just-in-time deliveries.
Magna will begin supplying body panels in August 1998, when 1999 models roll off production lines.
Until now all steel body parts for Grand Cherokees and Voyagers have been shipped from the US to Graz.
The plant will be operated by Magna Body and Chassis Systems Division, which also holds several Chrysler contracts in the US.
Voyagers are built by Eurostar, a manufacturing joint venture between Chrysler and Steyr-Daimler-Puch Fahrzeugtechnik. Grand Cherokees are built by Steyr under license.
Years of good relations with Chrysler were decisive in awarding the contract to Magna in the face of strong competition, said Eurostar executive Stephen Alcock.
The plant will produce about 200 tons of class A stampings per day.
Magna Body and Chassis also regards Audi, Opel and Suzuki plants in nearby Hungary as potential customers.
In the first stage investments will total about $70 million.