Jaguar Land Rover has decided not to renew its manufacturing contract with Magna Steyr, signaling its intention to pivot towards becoming a luxury electric vehicle (EV) manufacturer by 2025 and departing from its previous “mass premium” strategy. The latest OEM to sever ties with Magna Steyr has opted to expand its search for a replacement partner among various global automotive manufacturers.
In 2015, Jaguar Land Rover pioneered a contract manufacturing agreement with Magna Steyr, the Austrian subsidiary of Canadian company Magna Worldwide. Since 2017, Magna has been responsible for manufacturing two Jaguar models: the combustion-powered F-PACE and I-PACE electric vehicle.
On June 19, during a meeting with traders, Jaguar unveiled its plans to discontinue production of five “zero-revenue” models, including the two SUVs mentioned above, as it shifts towards becoming a more exclusive, all-electric brand.
Jaguar’s recent announcement confirms earlier reports from March, revealing its plans to discontinue all internal combustion engine (ICE) car production in favor of a new era of ultra-luxurious battery-electric vehicle (BEV) models.
As Jaguar’s contract with Magna Steyr is set to expire in December, the automaker has decided not to renew its agreement with the Austrian-based manufacturer. Another transfer is made, adding to the string of client exits from the Austrian manufacturing facility, leaving ample capacity for new business opportunities.
Jaguar cancels plans to manufacture electric vehicles ahead of brand relaunch in 2025.
As part of Jaguar’s strategic pivot, the brand has announced a significant commitment to electric vehicles, with a promise to launch at least three new all-electric models by next year, exclusively produced at its own manufacturing facilities.
The automaker has decided to discontinue production of its XE and XF sedan lines, as well as its F-Type sports cars, which ceased manufacturing in May. The company will now take a similar step by ending production of its E-Tempo and I-P tempo SUVs before the end of the year.
If the expiring manufacturing contract departs Magna Steyr without further work, it will be a significant blow to the Austrian plant, which had previously been downsized by Fisker following the American automaker’s bankruptcy filing in June?
Power was harnessed to develop INEOS’ battery-electric variant of the Fusilier SUV, but this project was hindered by a recent delay from its customer.
The Austrian company Magna Steyr currently manufactures the Mercedes-Benz G-Class SUV, as well as producing the BMW Z4 roadster and the Toyota Supra. The contract manufacturer has been engaged in talks with several Chinese original equipment manufacturers to mitigate the impact of its declining customer base, as previously reported in May.
While imposing tariffs on Chinese electric vehicle (EV) imports may prompt a strategic move by European automakers, their decision to localise battery-electric vehicle (BEV) production in Europe could be shrewd. The Graz plant’s existing infrastructure and manufacturing capabilities would make it an attractive option for companies seeking to establish a seasoned facility that can swiftly adapt to changing market conditions.
Following its partnership termination with Magna, Jaguar is set to manufacture a new lineup of electric vehicles at its Halewood production facility. Three reimagined luxury Jaguars, the first being a four-door electric GT built on the JEA platform.
While details on Jaguar’s electric vehicle lineup beyond localized manufacturing remain scarce, it is expected that these models will embody luxury features and correspondingly higher price points, as the brand transforms into a distinct high-end marque akin to Maserati.
RIP I-Tempo.
