Magna to build the GAC Aion V in Graz

Magna has started series production of another Chinese electric car model, the Aion V from GAC, at its plant in Graz. The G6 and G9 models from Xpeng have also been assembled at the Magna plant since September.

Magna gac aion v graz sop — Image: Magna

The mid-range SUV GAC Aion V is already available in European markets such as Finland, Poland and Portugal, so far as imports from China. We were also able to test one of these models; you can read our impressions from the test drive here. In short, the Aion V does not offer any exciting technology and does not have any outstanding features like the Xpeng G6. But it offers rock-solid key data and generous equipment at an affordable price.

After rumours first emerged in March this year about contract manufacturing of the Aion V at Magna in Graz (together with the Xpeng G6 and G9 models), GAC and Magna have now announced the start of series production in Europe. The two Xpeng electric cars have been manufactured there for the European market since September. By manufacturing in Europe, the Chinese manufacturers are circumventing the EU special tariffs that would otherwise be levied on the import of Chinese-built electric cars into the European Union.

Image: Magna

Magna will only be responsible for vehicle production, with sales handled by GAC. “GAC plans to expand into other European markets through new partnerships and service and sales networks,” according to Magna’s announcement. However, the Canadian company has not specified exactly which markets these will be or what capacity GAC has secured from Magna.

The Magna vehicle plant in Graz has mixed production lines on which combustion engine vehicles, hybrids and electric cars are manufactured together. Well-known electric models from the plant include the Jaguar I-Pace and, for a short time, the Fisker Ocean (both discontinued), as well as the current Mercedes G-Class with EQ technology and the two Xpeng models. On the combustion engine side, the BMW Z4 and Toyota Supra duo are still rolling off the production line there.

“Europe is a vital market in GAC’s global development,” says Wei Haigang, President of GAC International. “Partnering with Magna enables us to bring locally assembled electric vehicles to European customers that reflect GAC’s values of smart technology, sustainability and craftsmanship.”

Roland Prettner, President of Magna Complete Vehicles, added: “This collaboration reflects the trust automakers place in Magna’s expertise. Our Graz facility provides flexibility and capacity, allowing OEMs like GAC to localize production efficiently and confidently.”

magna.com

This article was first published by Sebastian Schaal for electrive’s German edition.