Magna Adding North American Plant

AURORA, CANADA (June 6, 2007) - The Detroit News reported that Magna International Inc., the only auto-parts supplier in the world to fully assemble cars, is moving closer to adding a North American plant to build vehicles on contract, an executive said.

Magna President Mark Hogan said Tuesday, "A North American operation is `in the offing' and most likely will involve a European manufacturer looking to escape the exchange penalty caused by the strength of the euro to the dollar." He added, "We are more developed and down the road than we ever have been before." 

Magna, Canada's largest auto-parts maker, has been looking at possible sites for a North American auto-assembly plant for a couple of years, Hogan said. Opening a North American assembly plant would also fulfill a Magna goal dating to the 1990s.

In addition, it may help prevent a repeat of Magna's pending loss of a contract with BMW to build vehicles in Austria. BMW is shifting production to the United States, partly because of exchange rates. 

(Source: Detroit News)