Magna Steyr will build the upcoming Z4 and Supra sport compacts.
According to sources speaking to Automotive News Europe, contract car producer Magna Steyr will manufacture Toyota and BMW’s upcoming Supra and Z4 sports cars. The sport compact is being jointly developed between the two companies and shares the same platform.
Magna Steyr is a subsidiary of the massive Canadian auto parts manufacturer, Manga International. Steyr is the largest contract car manufacturer in the world, producing around 200,000 cars annually. They have production sites around the globe and are headquartered in Graz, Austria.
A favorite company for larger car makers that aren’t able to meet production demands with their own facilities, Magna Steyr currently produces such cars as Jaguar’s E-Pace crossover and I-Pace electric car. They’re also known to take over production on low-volume specialty models, such as the Mercedes G-class.
Although hotly anticipated by automotive enthusiasts, the reborn Supra and Z4 are not expected to generate high sales number to compete with the likes of more homely hatchbacks and SUVs. Shifting production to a contracted manufacturer makes sense for the low volumes Toyota and BMW expect to produce.
BMW and Toyota are sharing the costs of development by jointly creating their Z4 and Supra sport compacts. The market for such vehicles has diminished precipitously over the past decade as younger generations view cars less as a status symbol and more as a tool for their lifestyle. With such low returns, keeping research and development costs to a minimum is the only way to make such cars profitable, thus BMW and Toyota can share those costs and still end up with a stylish vehicle.
Internally the cars are very similar, sharing a chassis, engine, and much of the electronics. Externally the cars are different due to entirely different bodies.
The racing version of the Supra was unveiled at the Geneva Motor Show earlier this month, while the production model is set to go on sale in the early part of 2019.