Jaguar-Land Rover has decided not to renew its production contract with Magna Steyr as it looks to transition from a “mass premium” brand to a luxury EV automaker in 2025. This is the latest OEM to drop Magna Steyr, which is now expanding its search for new clients to other global automakers.
Jaguar-Land Rover first announced its contract manufacturing agreement with Magna Steyr – the Austrian production arm of Canada’s Magna International, in 2015. Since 2017, Magna has been in charge of the production of two Jaguar models, including the combustion E-Pace and I-Pace EV.
During a June 19 call with investors, Jaguar divulged plans to nix production of five “zero profit” models including the two SUVs listed above, as it transitions into becoming a more boutique, all-electric brand. This announcement echoes news by Jaguar shared last March that it is working to abandon all ICE vehicle production ahead of a fresh start as an ultra-luxe BEV brand.
Jaguar’s contract with Magna Steyr expires this December, and given the automaker’s recently shared plans, it has decided not to renew. This move is the latest in a series of clientele exiting agreements with the Austrian manufacturing facility, which has plenty of assembly lines that will soon be open for business.
Jaguar nixes EV production ahead of brand rebirth in 2025
Today’s news is the latest shift in Jaguar’s business strategy as it works to focus on EVs next year, promising at least three new all-electric models on the horizon at its own production facilities.
The automaker shuttered production of its XE and XF sedans and F-Type sports cars this past May and will now do the same to the E-Pace and I-Pace SUVs before the end of the year.
The expiring manufacturing contract could leave Magna Steyr further short of work, as the Austrian plant was already left in the cold by Fisker after the American automaker filed for bankruptcy in June.
The facility was also tapped to build INEOS’ BEV version of the Fusilier SUV, but that client announced a delay to that vehicle’s development and production last month.
Magna Steyr currently assembles the G-Class SUV for Mercedes-Benz, the BMW Z4 roadster, and the Toyota Supra. As we reported back in May, the contract manufacturer is holding discussions with several Chinese OEMs to offset its dwindling customer base.
This could be a wise strategy as the EU recently imposed large tariffs on Chinese EV imports, so those automakers are scrambling to localize BEV production in Europe and the Graz plant would offer a seasoned facility that is ready to go.
Following the exit from production with Magna, Jaguar will build its new line of EVs at its Halewood plant. The three new models have been toured as “reimaged modern luxury Jaguars,” – the first of which will be a four-door electric GT built atop the automaker’s unique JEA platform.
We don’t know much else about the new Jaguar EV line ahead of localized production, but they should be quite luxurious and, as a result, quite expensive as the automaker rebrands itself as a more exclusive high-end marque, similar to Maserati.
RIP I-Pace.
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