China’s Guangzhou Automobile Group (GAC) has reached an agreement with Magna to produce its all-electric AION V model at a Magna manufacturing plant in Graz, Austria, the two companies announced on Thursday.

The Magna logo is seen outside the Magna Electric Vehicle Structures Facility that builds battery enclosures for electric (EV) vehicles, in St. Clair, Michigan, U.S., March 26, 2025.

The Graz facility, operated by Magna Steyr, features flexible production lines capable of assembling gasoline, hybrid, and fully electric vehicles on shared equipment. This arrangement will enable GAC to assemble the AION V directly within the European Union.

“Europe is a vital market in GAC’s global development,” said Wei Haigang, president of GAC International.

Roland Prettner, president of Magna Steyr’s contract manufacturing division, emphasized that the plant’s advanced capabilities allow international automakers to establish local production quickly and efficiently.

By manufacturing the AION V in Austria, GAC will supply the European market with vehicles assembled inside the EU customs area. The move follows the introduction last year of provisional EU duties of up to 37.6 percent on electric vehicles imported from China.

The partnership marks the second recent collaboration between Magna Steyr and a Chinese automaker at the Graz site. In September, Magna announced that it would also produce battery-electric models for XPeng at the same facility.

The cooperation enables GAC to expand its presence in Europe through locally assembled vehicles while utilizing Magna’s established engineering and production expertise. The shared-line approach at the Austrian plant supports multiple powertrain types, providing flexibility for various customer programs.

This manufacturing arrangement represents a practical step for Chinese automakers seeking to serve European customers with vehicles built within the region, combining GAC’s electric vehicle technology with Magna’s European production infrastructure.

by Reuters