Magna Steyr Schemes US Factory to Comply with Biden’s “Made In America” ​​EV Rules

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Magna Steyr is the automotive world’s answer to a kick-ass session tire. Just as LA’s Wrecking Crew provided the backing tracks for hundreds of ’60s hits without anyone buying the records and realizing that the guys on the record sleeves weren’t playing their own instruments, Magna provides automotive building services to OEMs ranging from BMW to Toyota from its base. in Austria.

But Magna and Fisker, who it recently contracted to produce the new Ocean SUV, and Jaguar, for whom Magna already builds the I-Pace EV, have a problem. Under the terms of the Biden administration’s new inflation law, tax breaks for electric vehicle drivers now depend on the vehicle being built in North America. And that means all EVs built in Europe and imported into the US will struggle to compete with domestic rivals on price. The news that Magna is considering opening a factory in the US is therefore not a big surprise.

Related: 2023 Fisker Ocean Sport and Ultra Sold Out in US, Company Working to Block Current EV Tax Credit for Reservation Holders

“We want to enter the US market. We are now intensively looking for a location”, car news reports Magna Steyr Vice President Kurt Bachmaier, telling: Automotive Woche.

Bachmaier has not disclosed where the factory would be located, although he did say that California has been ruled out as a potential location. He also emphasized that wind levels and hours of sunshine can play an important role in determining location, as Magna aims to generate renewable electricity.

“We want a climate-friendly factory,” said Bachmaier Automotive Woche‘s reporters.

Magna Steyr is owned by Canada’s Magna International, but the production base is in Europe. Vehicles it currently produces for automakers include the BMW 5 Series and Z4, Jaguar E-Pace and I-Pace, Toyota Supra and Mercedes G-Class, but in the past it has built everything from the Aston Martin Rapide to the Jeep Grand Cherokee. . Production of the Fisker Ocean will start in November at the site in Graz, Austria.

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