Magna International is likely to lose production work with Mini as parent BMW looks to concentrate output of new-generation Minis in the UK and the Netherlands.
BMW plans to build cars for its Mini brand at Mitsubishi's NedCar factory in the Netherlands to ease capacity constraints at Mini's plant in Oxford, England.
Magna's car manufacturing subsidiary, Magna Steyr, currently builds the Mini Countryman SUV and later this year will also begin producing the Paceman, a sportier coupe version of the SUV, the seventh derivative of the Mini.
A BMW spokesman said in the mid-term the company is looking to concentrate Mini production in Oxford and NedCar. He said the Dutch plant in Born would offer improved logistics versus Magna Steyr's plant in Graz, Austria, since it was closer to Mini's supplier base, which is largely situated in the UK.
In England, Mini operates the Oxford vehicle plant as well as an engine factory in Hams Hall and a steel press in Swindon, where it employs about 5,500 people.
BMW said it has been happy with Magna Steyr's performance and production quality. The automaker sees Magna Steyr as "an important, strategic production partner with whom we would like to continue working together in the future."
A spokeswoman for Magna Steyr said the company has manufactured cars for BMW since 2003 and looks forward to further business beyond the Mini since it would be a "key contribution to the production and development site in Graz."