JLR Ends Production Contract with Magna Steyr Amid Shift To Luxury EVs
JLR’s Decision Marks End of E-Pace And I-Pace Production In Austria
Jaguar Land Rover (JLR) has announced it will not renew its production contract with Magna Steyr, marking a shift in the company’s electric vehicle (EV) strategy as the decision will end the production of Jaguar’s E-Pace and I-Pace SUVs at Magna’s Austrian plant.
During a June 19 investor call, Jaguar revealed its intention to discontinue five “zero profit” models including the two SUVs currently produced by Magna Steyr. The strategy aligns with Jaguar’s March announcement to abandon all internal combustion engine (ICE) vehicle production in favor of becoming a luxury battery electric vehicle (BEV) brand by 2025.
Jaguar’s transition will see the introduction of at least three new all-electric models with production shifting to its Halewood plant in the United Kingdom (UK).
The first of these new models is projected to be a four-door electric GT built on Jaguar’s proprietary JEA platform. While details remain scarce, the company has described these upcoming models as “reimagined modern luxury Jaguars.”
Magna Steyr Moving Forward
With the end of JLR’s contract with Magna Steyr, the Austrian company is seeking new clients to fill the void left by departing automakers. Notably, President of Magna Steyr Roland Prettner previously revealed that the company has been in talks with Chinese automakers looking to localize production in Europe, proving beneficial for Chinese EVs facing higher tariffs exported to the European Union (EU).
As of now, Magna Steyr’s Graz plant continues to produce models for Mercedes-Benz, BMW, and Toyota. With Jaguar’s strategic shift to focus on high-end EVs and streamlining its production, the company aims to launch its luxury EVs to the market in 2025. The contract between JLR and Mabga Steyr is set to take effect this December.
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