Magna Awarded Vehicle Assembly Business With Chinese OEM XPENG
Magna (NYSE:MGA) has secured a significant partnership with Chinese electric vehicle manufacturer XPENG to assemble two new electric vehicle models in Europe. The production will commence in Q3 2025 at Magna's facility in Graz, Austria, marking the first Chinese automaker to localize production in Magna's European complete vehicle operations.
This partnership represents a strategic milestone for both companies, with Magna leveraging its 125 years of manufacturing expertise and track record of producing over 4 million vehicles. The collaboration aligns with XPENG's European localization strategy and sets the foundation for future model developments.
Magna (NYSE:MGA) ha stretto una partnership significativa con il produttore cinese di veicoli elettrici XPENG per assemblare due nuovi modelli di veicoli elettrici in Europa. La produzione, prevista per il terzo trimestre 2025, partirà nello stabilimento di Magna a Graz, in Austria, segnando il primo produttore cinese a localizzare la produzione nelle operazioni europee di veicoli completi di Magna.
Questa partnership rappresenta una tappa strategica per entrambe le aziende, con Magna che sfrutta 125 anni di esperienza nella produzione e un track record di più di 4 milioni di veicoli. La collaborazione è allineata con la strategia di localizzazione europea di XPENG e getta le basi per lo sviluppo futuro dei modelli.
Magna (NYSE:MGA) ha asegurado una asociación significativa con el fabricante chino de vehículos eléctricos XPENG para ensamblar dos nuevos modelos de vehículos eléctricos en Europa. La producción comenzará en el tercer trimestre de 2025 en la instalación de Magna en Graz, Austria, marcando al primer fabricante chino en localizar la producción en las operaciones europeas de vehículos completos de Magna.
Esta asociación representa un hito estratégico para ambas compañías, ya que Magna aprovecha 125 años de experiencia en fabricación y su historial de haber producido más de 4 millones de vehículos. La colaboración se alinea con la estrategia de localización europea de XPENG y sienta las bases para el desarrollo futuro de los modelos.
Magna (NYSE:MGA)가 중국 전기차 제조사 XPENG과 유럽에서 두 가지 신규 전기차 모델을 조립하기 위한 중요한 파트너십을 체결했습니다. 생산은 2025년 3분기에 오스트리아 그라츠의 Magna 공장에서 시작될 예정이며, 중국 자동차 제조사 중 유럽의 Magna 완성차 사업 운영에서 현지 생산을 시작하는 최초의 사례가 됩니다.
이 파트너십은 양사 모두에게 전략적 이정표로, Magna는 125년의 제조 경험과 4백만 대 이상의 차량을 생산해 온 실적을 바탕으로 활용합니다. 협력은 XPENG의 유럽 현지화 전략과 일치하며 향후 모델 개발의 기반을 마련합니다.
Magna (NYSE:MGA) a conclu un partenariat important avec le constructeur chinois de véhicules électriques XPENG pour assembler deux nouveaux modèles de véhicules électriques en Europe. La production débutera au troisième trimestre 2025 dans l’installation de Magna à Graz, en Autriche, marquant le premier constructeur chinois à localiser la production dans les opérations européennes de véhicules complets de Magna.
Ce partenariat représente une étape stratégique pour les deux entreprises, Magna tirant parti de 125 années d’expertise manufacturière et d’un historique de production de plus de 4 millions de véhicules. La collaboration s’aligne sur la stratégie de localisation européenne de XPENG et ouvre la voie au développement futur des modèles.
Magna (NYSE:MGA) hat eine bedeutende Partnerschaft mit dem chinesischen Hersteller von Elektrofahrzeugen XPENG geschlossen, um in Europa zwei neue Modelle von Elektrofahrzeugen zusammenzubauen. Die Produktion beginnt im dritten Quartal 2025 in Magnas Werk in Graz, Österreich, und markiert das erste chinesische Automobilunternehmen, das die Produktion in Magnas europäischen Komplettfahrzeugbetrieben lokalisiert.
Diese Partnerschaft stellt einen strategischen Meilenstein für beide Unternehmen dar, wobei Magna seine 125-jährige Fertigungserfahrung und eine Bilanz von über 4 Millionen hergestellten Fahrzeugen nutzt. Die Zusammenarbeit passt zur europäischen Lokalisierungsstrategie von XPENG und schafft die Grundlage für zukünftige Modellentwicklungen.
Magna (NYSE:MGA) قد أبرمت شراكة مهمة مع الشركة الصينية لصناعة المركبات الكهربائية XPENG لتجميع نموذجيْن جديدين من المركبات الكهربائية في أوروبا. من المقرر أن يبدأ الإنتاج في الربع الثالث من 2025 في منشأة Magna في غرَاز، النمسا، مما يجعلها أول صانع سيارات صيني يقوم بتوطين الإنتاج في عمليات المركبات الكاملة الأوروبية لشركة Magna.
تمثل هذه الشراكة خطوة استراتيجية هامة لكلا الشركتين، حيث تستفيد Magna من 125 عامًا من خبرة التصنيع وسجلها في إنتاج أكثر من 4 ملايين مركبة. التعاون متوافق مع استراتيجية XPENG في التوطين الأوروبي ويمهد الطريق لتطوير النماذج المستقبلية.
Magna (NYSE:MGA) 已与中国电动汽车制造商 XPENG 建立重要合作，在欧洲组装两款全新电动汽车。该生产将于 2025年第三季度 在 Magna 位于奥地利格拉茨的工厂开始，标志着第一家在 Magna 的欧洲整车运营中实现本地化生产的中国汽车制造商。
这一伙伴关系对双方都是一个战略性里程碑，Magna 将利用其 125 年的制造经验 以及生产超过 400万辆 车辆的业绩记录。这次合作符合 XPENG 的欧洲本地化战略，并为未来车型的开发奠定基础。
- First Chinese OEM partnership for Magna's European operations, expanding client base
- Long-term collaboration agreement for future models beyond initial two vehicles
- Leverages Magna's established manufacturing infrastructure in Europe
- Strengthens Magna's position in the growing electric vehicle market
- Production start not until Q3 2025, indicating delayed revenue impact
- No financial terms or production volumes disclosed
Insights
Magna secures strategic contract with XPENG, marking first Chinese EV maker in Magna's European assembly operations with production starting Q3 2025.
This partnership represents a significant strategic win for Magna International in the competitive contract manufacturing space. The agreement to assemble two electric vehicle models for XPENG at Magna's Graz, Austria facility signals important market diversification for both companies.
For Magna, this deal leverages their extensive manufacturing expertise (over 125 years of vehicle manufacturing history with 4+ million vehicles produced) while expanding their customer portfolio to include Chinese automakers in Europe. This helps mitigate risk from potential downturns with existing customers while positioning Magna as the bridge for Asian manufacturers entering European markets.
The timing is particularly noteworthy as it comes amid increasing regulatory scrutiny of Chinese EV imports to Europe. By producing locally, XPENG can potentially avoid tariffs while gaining the coveted "Made in Europe" designation that may increase consumer acceptance.
Production scheduled for Q3 2025 gives both companies adequate time for preparation, including supply chain development, workforce training, and production line adjustments. The mention of a "long-term collaboration for future models" suggests this isn't merely a one-off project but potentially a multi-year revenue stream that could grow beyond the initial two models.
This arrangement exemplifies the evolving global automotive landscape where traditional manufacturing boundaries are increasingly fluid, with contract manufacturers like Magna facilitating market entry strategies for emerging automakers while optimizing their own production capacity utilization.
- New program marks the first Chinese automaker to localize production in Magna’s complete vehicle operations in Europe
- Magna to assemble two fully electric vehicle models
- Serial production is set to begin in Q3 2025
AURORA, Ontario, Sept. 15, 2025 (GLOBE NEWSWIRE) -- As Chinese car manufacturers enter the European market, the need for localized production is growing. Today, Magna has announced that XPENG, a Chinese smart electric vehicle manufacturer, has selected the company to assemble two new models for the European market. Serial production of these new smart electric vehicles will begin in Q3 2025, marking the start of a long-term collaboration for future models.
For nearly 20 years, Magna has supported Chinese automakers with complete vehicle engineering, and since 2018, with domestic manufacturing and assembly services. This newly awarded program marks the first complete vehicle assembly with a Chinese OEM out of Magna’s operations in Graz, Austria, aligning with XPENG’s commitment to European localization.
“We are thrilled to collaborate with XPENG, marking a significant milestone as our first Chinese OEM partner here in Europe,” said Roland Prettner, President Magna Complete Vehicles. “This partnership underscores our commitment to innovation and flexibility in meeting the evolving needs of the automotive industry. By leveraging our extensive experience and state-of-the-art facilities, we are well-positioned to support XPENG’s ambitious goals for the European market.”
Magna is a key strategic partner for OEMs that are looking to expand their presence within the region. With its range of capabilities, including being a world leader in brand independent contract manufacturing, Magna offers comprehensive automotive expertise, flexibility, and experience working with a wide range of OEMs. Due to this positioning, Magna is able to provide tailored and swift support to automotive manufacturers.
“Our partnership with Magna fits perfectly in our vision and strategy to strengthen our European capabilities,” said Brian Gu, Vice Chairman and President of XPENG. “It is a first step in our growth in Europe as we have a long-term commitment to Europe.”
With over 125 years of vehicle manufacturing expertise, Magna has established a global network of partners and suppliers. The company has developed more than 40 complete vehicles and derivatives and produced more than 4 million vehicles.
To learn more about Magna’s complete vehicle capabilities, visit www.magna.com/products/complete-vehicles/.
INVESTOR CONTACT
Louis Tonelli, Vice President, Investor Relations
louis.tonelli@magna.com │ 905.726.7035
MEDIA CONTACT
Tracy Fuerst, Vice President, Corporate Communications & PR
tracy.fuerst@magna.com │ 248.761.7004
ABOUT MAGNA INTERNATIONAL
Magna is more than one of the world’s largest suppliers in the automotive space. We are a mobility technology company built to innovate, with a global, entrepreneurial-minded team of over 164,000 employees across 338 manufacturing operations and 106 product development, engineering and sales centres spanning 28 countries. With 65+ years of expertise, our ecosystem of interconnected products combined with our complete vehicle expertise uniquely positions us to advance mobility in an expanded transportation landscape.
For further information about Magna (NYSE:MGA; TSX:MG), please visit www.magna.com or follow us on social.
THIS RELEASE MAY CONTAIN STATEMENTS WHICH CONSTITUTE “FORWARD-LOOKING STATEMENTS” UNDER APPLICABLE SECURITIES LEGISLATION AND ARE SUBJECT TO, AND EXPRESSLY QUALIFIED BY, THE CAUTIONARY DISCLAIMERS THAT ARE SET OUT IN MAGNA’S REGULATORY FILINGS. PLEASE REFER TO MAGNA’S MOST CURRENT MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL POSITION, ANNUAL INFORMATION FORM AND ANNUAL REPORT ON FORM 40-F, AS REPLACED OR UPDATED BY ANY OF MAGNA’S SUBSEQUENT REGULATORY FILINGS, WHICH SET OUT THE CAUTIONARY DISCLAIMERS, INCLUDING THE RISK FACTORS THAT COULD CAUSE ACTUAL EVENTS TO DIFFER MATERIALLY FROM THOSE INDICATED BY SUCH FORWARD-LOOKING STATEMENTS. THESE DOCUMENTS ARE AVAILABLE FOR REVIEW ON MAGNA’S WEBSITE AT WWW.MAGNA.COM.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/550039f8-00e7-4ec7-b315-15cd35239880
FAQ
What vehicles will Magna (MGA) manufacture for XPENG in Europe?
Where will XPENG's electric vehicles be manufactured by Magna?
When will Magna start producing XPENG vehicles in Europe?
What is the significance of the Magna-XPENG partnership?
How many vehicles has Magna produced in its history?
