A new off-road version of the iconic British Mini is to be built in Austria.
BMW, owner of Mini, said yesterday that it had decided to out-source development and production to Graz-based Magna Steyr in order to save money and free up capacity at the vehicle's factory near Oxford.
The Mini has been a huge success under BMW, and production at the Oxford site is being increased from 200,000 at present to 260,000 vehicles a year.
The new Sports Activity Vehicle (SAV) brings the number of versions to four, with the Mini, the Convertible, and the Clubman. But Frank-Peter Arndt, BMW's head of production, said the growth in sales had put pressures on Oxford.
"By using Magna Steyr for production, we are able to give our production network some breathing space to respond fully to market needs," he said. "This solution will allow us to bring the Mini SAV to the market as quickly as possible."
BMW has not disclosed the size of its investment in the four-wheel drive SAV, nor when the model might hit the forecourts.
However, the SAV is not expected to be launched before 2010, after the new convertible due in 2009. About 40,000 SAVs a year are expected to be produced, a similar number to the convertible.
A UK union official said yesterday that he understood the investment decisions, but was disappointed that money and jobs for the "quintessential British motor was going abroad".
Aware of the sensitivities of the decision, BMW said in its announcement yesterday that "the Mini designers will ensure that the vehicle will be a true Mini".
Moving SAV manufacturing abroad follows decisions by aero-engine company Rolls-Royce to invest in facilities overseas and fears that some aircraft wing production at Airbus's UK factories could move out of the country.
The Telegraph
BMW, owner of Mini, said yesterday that it had decided to out-source development and production to Graz-based Magna Steyr in order to save money and free up capacity at the vehicle's factory near Oxford.
The Mini has been a huge success under BMW, and production at the Oxford site is being increased from 200,000 at present to 260,000 vehicles a year.
The new Sports Activity Vehicle (SAV) brings the number of versions to four, with the Mini, the Convertible, and the Clubman. But Frank-Peter Arndt, BMW's head of production, said the growth in sales had put pressures on Oxford.
"By using Magna Steyr for production, we are able to give our production network some breathing space to respond fully to market needs," he said. "This solution will allow us to bring the Mini SAV to the market as quickly as possible."
BMW has not disclosed the size of its investment in the four-wheel drive SAV, nor when the model might hit the forecourts.
However, the SAV is not expected to be launched before 2010, after the new convertible due in 2009. About 40,000 SAVs a year are expected to be produced, a similar number to the convertible.
A UK union official said yesterday that he understood the investment decisions, but was disappointed that money and jobs for the "quintessential British motor was going abroad".
Aware of the sensitivities of the decision, BMW said in its announcement yesterday that "the Mini designers will ensure that the vehicle will be a true Mini".
Moving SAV manufacturing abroad follows decisions by aero-engine company Rolls-Royce to invest in facilities overseas and fears that some aircraft wing production at Airbus's UK factories could move out of the country.
The Telegraph
