China’s Guangzhou Automobile Group (GAC) will manufacture its electric Aion V model at a Magna plant in Austria, the companies said on Thursday, a move aimed at reducing exposure to the European Union’s tariffs on China-made electric vehicles.
The vehicle will be built at Magna’s facility in Graz, which supports gasoline, hybrid and electric models on shared production lines. The EU last year imposed provisional duties of up to 37.6% on EVs imported from China, citing concerns over subsidized competition.
“Europe is a vital market in GAC’s global development,” said 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.”
The agreement follows Magna’s announcement in September that it would produce battery-electric models for Xpeng at the same facility.
