Magna Steyr
Subsidiary of Magna International for vehicle manufacturing and engineering services.
Last updated October 13, 2026
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- Nov 4, 2026
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- Nov 4, 2026
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Overview
Magna Steyr is a subsidiary of Magna International, headquartered in Graz, Austria, and is a leading independent contract manufacturer of complete vehicles, offering full development-to-production services for various automotive brands, including Mercedes-Benz G-Class and BMW Z4.
History
Magna Steyr's roots lie in the Austrian Steyr-Daimler-Puch industrial tradition, which included vehicle production, four-wheel-drive expertise and specialist automotive engineering. Magna International acquired a majority shareholding in Steyr-Daimler-Puch in 1998. The automotive activities were subsequently reorganized, and Magna Steyr Fahrzeugtechnik was established in 2001 as part of Magna's expanding vehicle-engineering and contract-manufacturing business. The company developed a distinctive role in the automotive industry by working behind the brands sold to consumers. Rather than marketing its own mass-market marque, it designed, engineered and assembled vehicles for other manufacturers. This model allowed customers to use Magna Steyr's specialist capabilities for complex, low-volume or capacity-constrained programs without creating dedicated production infrastructure of their own. A major early capability was four-wheel-drive engineering. Magna Steyr developed Mercedes-Benz's 4Matic system and assembled all-wheel-drive E-Class variants for Mercedes-Benz from 1996 to 2006. The company also worked on the BMW X3 and manufactured the original E83-generation X3. Its production history includes a broad range of vehicles, from the Puch 500 and specialist off-road vehicles such as the Haflinger and Pinzgauer to Mercedes-Benz, Jeep, Chrysler, MINI, Peugeot, Aston Martin, BMW and Jaguar products. In 2002, Magna Steyr absorbed Daimler AG's Eurostar vehicle assembly facility. This expanded the company's manufacturing base and reinforced the Graz plant's importance. Over subsequent years, it assembled models such as the Chrysler Voyager, Jeep Grand Cherokee, Mercedes-Benz M-Class, Saab 9-3 Convertible, Chrysler 300C, Mercedes-Benz SLS AMG, Peugeot RCZ, Aston Martin Rapide, MINI Countryman and MINI Paceman. The variety of these programs reflected the company's ability to switch between different vehicle architectures and production volumes. Magna Steyr also pursued technology development beyond final assembly. It produced convertible roof systems for vehicles including the Mercedes-Benz SLK and Opel Astra TwinTop, and supplied or developed rear-differential systems for selected four-wheel-drive vehicles. The MILA program, whose name refers to Magna Innovation Lightweight Auto, provided a platform for demonstrating lightweight structures, alternative fuels, modular packaging and electric propulsion. Concepts included the one-seat MILA, the MILA Future, MILA Alpin, MILA EV, MILA Aerolight, MILA Coupic, MILA Blue and plug-in hybrid MILA Plus. During the 2010s, the company continued to win programs from major automakers. It began BMW 5 Series production in 2017 and assembled Jaguar's E-Pace and I-Pace. The I-Pace program was especially significant because it expanded Magna Steyr's role in battery-electric vehicle production. The business also supported the development or manufacture of newer vehicles and prototypes, including the Sony Vision-S and Fisker Ocean. Magna-related engineering operations contributed to the Ineos Grenadier through chassis and suspension work, while vehicle assembly was assigned to the former Smartville facility in Hambach, France. Not every planned program proceeded. Porsche announced in 2008 that Magna Steyr would manufacture Boxster and Cayman models from 2012, but the agreement was cancelled in 2009 and the work was transferred elsewhere. In another strategic change, Magna International sold Magna Steyr's battery-pack business to Samsung SDI during 2015. The end of Jaguar programs and the later cancellation of Fisker Ocean orders illustrated the employment and capacity risks inherent in contract manufacturing. Magna Steyr continues to operate as a major unit of Magna International. Its business remains centered on engineering, flexible assembly, specialist vehicle production and support for automakers entering new segments or powertrain technologies. The company is therefore best understood as an automotive manufacturing and engineering brand, not as a conventional consumer automobile marque.
- 2024
Fisker Ocean production program ends
[1]Following Fisker's cancellation of Ocean orders, around 500 Graz employees were laid off.
- 2020
Sony Vision-S cooperation and Fisker Ocean agreement
[1]Magna Steyr participated in development of Sony's Vision-S concept, while Magna announced an agreement to manufacture the Fisker Ocean.
- 2018
Jaguar I-Pace production begins
[1]The Graz plant started assembling the Jaguar I-Pace, a major battery-electric vehicle program.
- 2017
BMW 5 Series assembly starts in Graz
[1]Magna Steyr began assembling the BMW 5 Series sedan in Graz.
- 2015
Battery-pack business sold to Samsung SDI
[1]Magna International sold the battery-pack business associated with Magna Steyr to Samsung SDI.
- 2009
Porsche contract is cancelled
[1]The planned Porsche production agreement was cancelled and transferred to Karmann.
- 2008
Porsche announces planned Boxster and Cayman production
[1]Porsche announced a future Magna Steyr manufacturing contract for Boxster and Cayman models.
- 2005
MILA concept program begins
[1]Magna Steyr introduced the first MILA lightweight sports-car concept at the Frankfurt Motor Show.
- 2002
Eurostar facility becomes part of Magna Steyr
[1]The company absorbed Daimler's Eurostar vehicle assembly facility.
- 2001
Magna Steyr is established
[1]Magna Steyr Fahrzeugtechnik was formed as Magna International consolidated its Austrian automotive engineering and manufacturing activities.
Products and positioning
A global, independent automotive engineering and contract-manufacturing partner specializing in flexible vehicle production, complex vehicle programs, all-wheel-drive systems, specialist vehicles and emerging electric mobility.
Automotive manufacturing services
Contract vehicle engineering and assembly
Magna Steyr engineers and assembles complete vehicles for other manufacturers. Its programs have included passenger cars, sport-utility vehicles, convertibles, sports cars and electric vehicles. The service is designed for automakers that need specialist development, flexible capacity, low-volume manufacturing or an external production partner.
All-wheel-drive technology · 1996
Mercedes-Benz 4Matic systems
Magna Steyr developed Mercedes-Benz's 4Matic all-wheel-drive system and manufactured all-wheel-drive versions of the E-Class for a substantial period. This work established the company's reputation in driveline engineering and complex vehicle integration.
Vehicle concepts and research · 2005
MILA concept family
MILA, short for Magna Innovation Lightweight Auto, was a family of research and demonstration vehicles. The concepts explored lightweight construction, compressed natural gas, modular body configurations, plug-in hybrid power and battery-electric mobility. Members included MILA, MILA Future, MILA Alpin, MILA EV, MILA Aerolight, MILA Coupic, MILA Blue and MILA Plus.
Automotive components · 1996
Convertible roof systems
The company has produced convertible and retractable-roof systems, including the Mercedes-Benz SLK vario-roof assembly and the roof system used in the Opel Astra TwinTop. These programs demonstrate Magna Steyr's component-engineering and body-system capabilities.
Battery-electric vehicle assembly · 2018
Jaguar I-Pace
Magna Steyr assembled Jaguar's I-Pace electric crossover in Graz. Production began in 2018 and ended in 2024. The program was one of the company's most prominent early battery-electric vehicle manufacturing assignments.
Battery-electric vehicle assembly · 2022
Fisker Ocean
Magna Steyr was selected to manufacture Fisker's Ocean electric sport-utility vehicle. The program connected Magna's contract-manufacturing capabilities with Fisker's asset-light vehicle strategy, but Fisker's later cancellation of orders led to the program's end and employment reductions at Graz.
Controversies
2026
Fisker Ocean owners receive bankruptcy settlement payouts in Sweden and Norway
Bankruptcy proceedings for Fisker in Sweden and Norway have largely concluded, with affected Fisker Ocean owners receiving settlement payouts far below their original claims. In Sweden, owners shared about 2.5 million kronor, roughly 41,000 kronor each, against original claims of 147,800 kronor each, while the law firm Carler billed 3.4 million kronor, more than the total paid to owners. In Norway, the Fisker subsidiary's debts totaled 620 million Norwegian kronor, including about 457 million owed to contract manufacturer Magna Steyr.
Brand decisions
2024
Respond to the end of Fisker Ocean ordersStrategyBackground
Fisker cancelled orders for the Ocean, reducing demand for the Graz contract-manufacturing program.
Action taken
Magna Steyr ended the affected production activity and laid off approximately 500 employees at the main plant.
Aftermath
The event highlighted the workforce and capacity exposure of contract manufacturers to changes in customer solvency and vehicle demand.
2020
Enter Fisker Ocean manufacturing agreementProduct launchBackground
Fisker sought an external manufacturing partner for its Ocean battery-electric sport-utility vehicle.
Action taken
Magna announced that Magna Steyr would build the Ocean, while Magna International also took a minority ownership interest in Fisker.
Aftermath
The Ocean entered production through Magna Steyr, but the program later ended after Fisker cancelled orders.
2015
Sell battery-pack business to Samsung SDIM&ABackground
Magna International reviewed the businesses operated within its automotive technology portfolio.
Action taken
The battery-pack business was sold to Samsung SDI during the second quarter of 2015.
Aftermath
The transaction transferred the battery-pack activity to Samsung SDI and narrowed Magna Steyr's direct battery-component operations.
Transaction value. Approximately US$120 million (Second quarter of 2015)
2009
Accept cancellation of planned Porsche assembly contractStrategyBackground
Porsche had announced that Magna Steyr would manufacture Boxster and Cayman models from 2012, but the planned arrangement was later reconsidered.
Action taken
The contract was cancelled in December 2009 and transferred to Karmann.
Aftermath
Magna Steyr did not receive the planned Porsche production program; the available reference does not quantify its financial effect.
Recent events
- Unconfirmed
Reported
Fisker Ocean owners receive bankruptcy settlement payouts in Sweden and Norway[3]
Bankruptcy proceedings for Fisker in Sweden and Norway have largely concluded, with affected Fisker Ocean owners receiving settlement payouts far below their original claims; in Sweden owners shared about 2.5 million kronor (roughly 41,000 kronor each) against original claims of 147,800 kronor each, while the law firm Carler billed 3.4 million kronor, more than the total paid to owners. In Norway, the Fisker subsidiary's debts totaled 620 million Norwegian kronor, including about 457 million owed to contract manufacturer Magna Steyr.
Sources3 sources
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