By Nora Eckert
DETROIT (Reuters) -China’s Guangzhou Automobile Group (GAC) will build its electric AION V model at a Magna facility in Austria, the two companies stated on Thursday, a strategy that should assist GAC avoid the EU’s tariffs on China-built EVs.
The GAC vehicle will be produced at Magna’s facility in Graz, Austria, which can create gasoline-powered, hybrid and electric vehicles on shared lines.
Last year, the EU introduced provisional tariffs of up to 37.6% on China-built EVs, describing their imports as a potential flood of unfairly subsidized EVs.
“Europe is a vital market in GAC’s global development,” stated Wei Haigang, president of GAC International.
Roland Prettner, president of the Magna Steyr contract manufacturing business, stated its expertise will allow autocreaters like GAC to localize production efficiently.
The GAC deal comes after Magna stated in September it would build battery-powered models for XPeng at the same Graz facility.
(Reporting by Nora Eckert in Detroit; Editing by Sonali Paul)
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