Magna Forges Landmark Partnership with Xpeng, Kicking Off EV Production in China

Magna International Inc., a global leader in the automotive supply industry, has announced a significant new venture: securing complete vehicle assembly business from XPENG, a prominent Chinese premium electric vehicle (EV) manufacturer. This landmark agreement marks a pivotal moment for both companies, establishing Magna's first complete vehicle manufacturing operation for a customer within China.

The assembly operations are strategically located in Guangzhou, China, a bustling hub for innovation and manufacturing.

This collaboration is specifically focused on the production of the XPENG G3, an intelligent electric SUV that has recently commenced production. The G3 represents XPENG's commitment to delivering advanced, high-quality electric vehicles to the rapidly expanding Chinese market.

This partnership isn't a new acquaintance but rather the deepening of an existing relationship.

The foundation for this collaboration was laid back in 2017 when Magna initially provided crucial support to XPENG with vehicle architecture and engineering services. This long-standing engagement highlights a shared vision for innovation and quality, paving the way for the current full-scale assembly agreement.

For Magna, a company globally recognized for its contract manufacturing prowess through its Magna Steyr subsidiary in Europe (known for assembling vehicles like the BMW 5 Series, Jaguar E-PACE and I-PACE, and the iconic Mercedes-Benz G-Class), this deal represents a significant strategic expansion.

It solidifies Magna's footprint in the world's largest automotive market and positions it at the forefront of the burgeoning electric vehicle segment in China.

Furthermore, this venture complements Magna’s broader strategy in China. In 2018, Magna established a joint venture with Beijing Electric Vehicle Co.

Ltd. (BJEV) in Zhenjiang, China, aimed at engineering and building premium electric vehicles for the Chinese market. The XPENG deal, therefore, not only expands Magna’s direct manufacturing capabilities but also reinforces its commitment to the future of mobility in the region.

Don Walker, CEO of Magna, underscored the importance of this partnership, stating that it exemplifies Magna's capability to adapt its world-class manufacturing expertise to meet the evolving demands of the global automotive industry, particularly in the dynamic EV sector.

For XPENG, leveraging Magna's extensive experience and advanced manufacturing processes is expected to significantly boost its production capacity and quality, enabling it to better compete in the fiercely competitive Chinese EV landscape and accelerate its growth trajectory.

This collaboration is more than just a business deal; it's a testament to the global nature of automotive innovation and manufacturing, where established giants partner with new-age pioneers to drive the future of sustainable transportation.