Porsche has announced that production of its Boxster and Cayman models is to shift to component supplier Magna Steyr's facility in Austria beginning in 2012. Last year the contract with Finland's Valmet to assemble the two associated mid-engined models was extended through 2012, after which the terms will expire and Magna will take over.
Porsche CFO and deputy chairman Holger P. Harter stressed that the decision was not a vote against Valmet – which has to date built over 200,000 vehicles for Porsche – but rather the result of several elements that Magna brought to the table: firstly, Magna's production is scalable so that it will only manufacture what Porsche's own factory in Zuffenhausen (where the rear-engined 911 series is made) cannot handle. Secondly, Magna is able to assume some development responsibilities along with the final assembly. Thirdly, Magna's proposal was more financially attractive (read: cheaper) than Valmet's. And finally, Magna already supplies various components to Porsche – including convertible roofs and body panels – creating the opportunity for future synergies between Porsche and various Magna subsidiaries.
The Magna MILA Alpin concept car shown in Geneva has gotten the attention of both Mercedes and BMW. The button-cute 4-wheeler rode on a flexible platform, could utilize a variety of fuel sources, climb 45-degree angles, and get up to 120 mph. Those capabilities, and the ability to be easily rebodied and cost-effectively manufactured, have the two premium brands looking at ways to bolster their lineups and enviro-credentials.
Mercedes is known to be working on developing a 4-wheel-drive A-Class sedan. While the sandwich floors in the A-Class and B-Class cars were specifically created to allow flexible drivetrains, it is open to exploring options with BMW. Those other Bavarians in blue and white appear to be even more serious, having engaged Magna to discuss strategy and market demand. The MILA could provide a sound platform for BMW's electric car rumblings, as well as cost-effective, outsourced manufacturing.
Three years ago, Magna Steyr debut what it called the Mila concept car -- Magna Innovation Lightweight Auto. Conceived as a pure driver's car, it was an environmentally-conscious single-seater that ran on natural gas up to 120 mph. Last year around this team, Magna followed up the Mila CNG with the Mila Future, a further evolution of the concept that bore two seats, completely covered wheels and an impossibly complicated folding hard top. For the next evolution of the MILA, Magna apparently thought that no one was serving the mountain climbing concept car market and stepped up to the challenge. The Mila Alpin is a chunky little off-road number that can climb 45-degree angles, runs on CNG, has 3+1 seating and what looks to be a seriously small turning radius. We hope the Magna stand in Geneva has a model Matterhorn so we can try it out.
