Contract manufacturer Magna Steyr plans EV plant in the U.S.

Magna Steyr, an Austrian contract manufacturing and engineering company owned by Canadian automotive supplier Magna International, wants to establish an electric vehicle plant in the United States and is looking for a location, company vice president Kurt Bach Meyer told Automobilwoche (subscription required) in an interview published last week.

He did not mention a potential site, but said a windy, sunny location is important because the company wants to run the plant on renewable energy. He also ruled out California as a candidate site.

Magna Steyr has been considering a U.S. plant for years, but the recent passage of the Inflation Control Act specifically highlights the fact that EVs must be manufactured in North America to receive the maximum $7,500 tax credit. This means that automakers are considering building more EVs in the region, and contract manufacturers like Magna Steyr could offer flexible solutions.

Magna Steyr already builds the Jaguar I-Pace at its main plant in Graz, Austria, and will build the Fisker Ocean later this year. Neither EV will receive a tax credit under the new rules. Magna Steyr also builds the Mercedes-Benz G-Class and will likely build the EQG electric version, due around 2024. [Taiwan's Foxconn, which specializes in contract manufacturing of electronic devices, such as iPhones for Apple, has recently expanded into car manufacturing. Last October, the company agreed to buy a former General Motors plant in Ohio, which will be used to manufacture Fisker's Project PEAR and Roadstown Endurance.