Surprise-X3 is not manufactured by BMW!!

[Kirby]

This Is Not a BMW Plant

How top automakers turn to little-known suppliers for some of their sexiest cars.

Fortune Magazine

Excerpts:

...this X3 factory isn't in Germany, nor is it owned by BMW. It is in the Austrian city of Graz, a couple of hours' drive south of Vienna, and it is operated by Magna Steyr, a subsidiary of Magna International, the big Canadian auto-parts maker...

...BMW's X3 accounts for only half the vehicles Magna builds. Last year it cranked out a total of 227,244 cars and SUVs—more than the combined in-house production of Saab (112,000) and Porsche (73,000). On its 200-acre Graz site, Magna Steyr has five assembly lines supplied by two paint shops and six body shops, which draw stampings and subassemblies like doors from another Magna plant 12 miles down the autobahn. Besides X3s, Magna Steyr builds Saab's 9-3 convertible; several Chryslers, including a European minivan; all-wheel-drive editions of Mercedes' E-Class sedan and station wagon; and Mercedes' quasi-military G-Class SUV....

... For the X3, Magna gutted and revamped an old minivan factory that Chrysler had built in the early 1990s, but CEO Manfred Remmel figures that BMW still footed about half the cost to get the vehicle into production...

...Magna probably sells each X3 to BMW for around $14,000, half the U.S. dealer invoice price for a basic vehicle...

 

[bmw046series]

Hey nothing like cutting overhead - I've been to Graz I have family there, their industrial zone is enourmous, like a small city.

 

[epj3]

This is nothing new, I think someone posted this a looong time ago, in fact it was in an autoweek article I believe. Non-the-less, why's it matter?

 

[Big Daddy]

I was not aware of this, maybe I need to read more? Would it matter if they were being built in Mexico or a thrid world country? I find it interesting...oh goodness the Germans are "outsourcing"!

 

[codex57]

Errr, what's the big deal again? What does it matter if BMW doesn't own the plant? The car uses a BMW design and specifications right? If BMW signs off on it, who cares who technically owns the plant itself?

And which sexy BMW does Magna Steyr make? Calling an X3 sexy is like calling a Pontiac Aztek sexy. I keed! I keed!

 

[bmwtransport]

Its the same thing. Same quality and craftmanship.

 

[Kirby]

This is nothing new, I think someone posted this a looong time ago, in fact it was in an autoweek article I believe. Non-the-less, why's it matter?

Errr, what's the big deal again? What does it matter if BMW doesn't own the plant? The car uses a BMW design and specifications right? If BMW signs off on it, who cares who technically owns the plant itself?

Please refer me to the article that was posted before with this level of detail about Magna. I must of missed it.


Where did anyone or the article say that it IS a problem or concern? I posted it because it gives insight into the business that 95% of the people are not aware of.

You guys are reading way too much into the intent of the post....

 

[aNoodle]

Interesting article...I think remember hearing about Magna, but i didn't fully understand the relationship.

 

[epj3]

Please refer me to the article that was posted before with this level of detail about Magna. I must of missed it.


Where did anyone or the article say that it IS a problem or concern? I posted it because it gives insight into the business that 95% of the people are not aware of.

You guys are reading way too much into the intent of the post....

BMW Group Announces Partnership With Magna Steyr For New BMW X3
10/31/2001

Working together on Development and Production

Munich. The BMW Group and SFT (Steyr-Daimler-Puch Fahrzeugtechnik AG & Co. KG), Graz (Austria), a subsidiary of Magna Group, have signed a cooperative agreement covering the development and manufacture of the new BMW "X3" Sports Activity Vehicle. The detailed vehicle concept worked out by engineers from the BMW Group was forwarded to Magna Steyr Engineering for development. Production will be taken over by Magna Steyr Fahrzeugtechnik in Graz. The contract was signed yesterday in Munich.

By partnering with SFT on the realisation of the BMW "X3" project, the BMW Group is optimising its own resources and pushing forward with its product offensive. In Magna Steyr, the BMW Group has selected a partner with multiple years of experience. There has been in-depth cooperation between the companies for years in the field of BMW four-wheel drive technology in particular.

"Those who work alone can only accumulate; but those who cooperate intelligently can multiply," says Professor Dr.-Ing. Joachim Milberg, Chairman of the Board of Management of BMW AG. "Our cooperation with Magna Steyr increases the speed and flexibility of our company and is a further milestone in the consistent implementation of our product offensive."

The BMW "X3" is an expansion of the X family, and is an independent new development. As with all BMW vehicles, some elements will use BMW module units. All the vehicle components in the BMW "X3" will be signed off by the BMW Group's Development Departments. In addition, core areas of competence, such as design, engine construction, purchasing and customer service will remain the sole responsibility of the BMW Group.


Dr.-Ing. Burkhard Göschel, Member of the Board of BMW AG, Development: "We are making sure, right in the development process, that the "X3" will be a BMW through and through. Components where BMW is a step ahead in terms of expertise will continue to be developed by BMW engineers solely."

In order to integrate Magna Steyr in to the worldwide BMW development network, associates from Magna Steyr Fahrzeugtechnik will be trained at the BMW Group facilities. Further details about the product will be published as usual before the market launch.

Magna Steyr Fahrzeugtechnik will be building a new assembly building in Graz for production. The existing paint shop and shell construction facilities will be modified. The total project-related expenses total comes to EUR 500 million ($ 230 million). Around 2,500 associates will be employed in production. The BMW "X3" will be produced in Graz for exports to markets around the world. The production plants in Graz are designed for a capacity of over 300 vehicles per day. Production will be adjusted flexibly to demand. It is intended that series production should start in 2004.

Magna Steyr has regularly been awarded top marks in the highly regarded quality surveys carried out by J.D. Power & Associates. Magna Steyr Engineering will be employing some 400 engineers on series development.

"The BMW order is a further recognition of our overall vehicle competence, which is based - at the Graz site in particular - on
100 years of tradition and experience in automobile technology," explained Siegfried Wolf, President & CEO, Magna Steyr, the parent company of SFT.


The BMW Group in Austria
The BMW Group is already important for Austria as a commercial location. Overall, the BMW Group's involvement in Austria has already created over 8,000 direct and indirect jobs and led to the investment of around EUR 2 billion.

Last year, exports by the BMW Group in Austria exceeded imports by over 55% (exports: EUR 2.2 billion, imports: EUR 1.4 billion). The largest engine factory in the BMW Group today has been located in Steyr (Upper Austria) since 1979. In the year 2000, around 2,500 associates produced over 620,000 four and six cylinder petrol and diesel engines, which is around two thirds of all BMW engines built worldwide. At the same time, the location is also the diesel competence centre within BMW.

The BMW Group's sales company in Austria, BMW Austria (founded in 1978), was able to deliver 11,675 cars and 1,891 motorcycles to customers in 2000.

 

[Kirby]

This is nothing new, I think someone posted this a looong time ago, in fact it was in an autoweek article I believe. Non-the-less, why's it matter?

The article you referenced wasn't posted on BMWBoard in the past 2 years, and is over 3 years old. Yet you say my post is "nothing new"???? [fake]

 

[leadtrombone]

Magna Steyr Fahrzeugtechnik will be building a new assembly building in Graz for production. The existing paint shop and shell construction facilities will be modified. The total project-related expenses total comes to EUR 500 million ($ 230 million).

just an amazing aside. wiht the exchange rate today it would be more like 750million $..

dont know if anyone cares but my 2 cents

(a little off topic i guess so sorry)

 

[johnbmwm1]

Didn't Steyr build diesel engines for BMW in the 80's? I had an E28 524td with a motor from Steyr. In any event, BMW has had a long relationship with them...I thought they ended up buying the engine plant years ago?