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Nissan Motor reverses proposal to have Magna build Infinitis in Austria

Nissan Motor Co., reversing route on a proposal declared during the month of May, stated that it will fabricate an innovative Infiniti compact vehicle for 2015 in-house in place of offering up the task out to Magna Steyr, a division of Canadian contractor Magna International Inc.

Infiniti had been probing since the month of May whether contract auto manufacturer Magna Steyr’s construction location in Graz, Austria, was appropriate for the said vehicle that will be based on a Mercedes front-wheel drive framework.

The car manufacturer stated, “Infiniti finished the feasibility examination by this week and has determined to fabricate the car in-house in a European construction plant as part of the brand’s overall growth proposals.”

Nissan Motor reverses proposal to have Magna build Infinitis in Austria

Infiniti, which has marketed approximately 4,000 vehicles in the western European market, thinks that volumes for the compact could be 10 times that quantity.

The verdict appears around 4 months after Nissan tapped Johan de Nysschen, who resigned as chief of Audi of America during last spring, to turn out to be senior vice president in charge of the Infiniti brand globally.

Magna reaction

The retardation for Magna appears after German auto manufacturer BMW stated that it would likely not refurbish the deal for Magna Steyr to construct the Mini Countryman SUV and Paceman SUV-coupe once their lifecycles have run out.

In a declaration, Gunther Apfalter, president of Magna Steyr and Magna International Europe, stated, “Even though we would have liked to witness the assembly of Infiniti’s innovative compact car realized at Magna Steyr, we are happy that Magna stays a vital supplier for Nissan Motor Co.”

“Nissan’s project group has stated their enthusiasm to act with Magna Steyr if future deal assembly chances happen, and we hope for supporting them as required.”

The majority of independent contract car manufacturers in the European market have either been saved by fresh capitalists, sold off in portions or filed for bankruptcy as their clients already have more than sufficient spare factory space of their own.

Only premium auto manufacturers have contended with construction bottlenecks as they swell their model range, shifting downmarket into small car sections customarily home to volume brands.

In the month of July, Daimler granted independent Finnish car maker Valmet Automotive an agreement to construct over 100,000 Mercedes-Benz A-Class compact cars from the year 2013 to 2016.

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