Magna: BMW Moves X3 Production in House
 

Automotive supplier Magna International Inc. said Wednesday it expects to stop making BMW AG's X3 sport utility vehicle at a plant in Austria by 2010, after the German automaker said it would move production to the U.S.

BMW said late Tuesday that it would shift production of the X3 to its own factory in Spartanburg, S.C., to meet demand in its single largest market in the U.S. and protect itself against a weak dollar.

Magna, which is headquartered in Canada, said it is currently a "'significant supplier"' to BMW's Spartanburg facility. However, Magna has been the sole production source of the X3 since 2003, and the X3 represented about 45 percent of the vehicles assembled at its plant in Graz, Austria.

Magna said it is "'in discussions with customers about future potential assembly opportunities"' at Graz.

BMW's move was prompted in part by a shift in the balance of world currencies. The euro has gained strength against the dollar, rising to an all-time high of $1.3682 on April 27.

A strong currency makes manufacturing relatively more expensive, particularly when exports are headed to markets with weaker currencies. BMW has previously said it planned to reduce its foreign exchange risks.

Source: [url=http://www.ibtimes.com/articles/20070516/magna-international-bmw.htm]International Business Times[/url]