Changan may hire Magna Steyr to build cars for Mexico JV

Shanghai, July 23 (Gasgoo.com) Chongqing Changan Automobile Co may choose Magna Steyr, a unit of Magna International Inc. to assemble cars for the upcoming joint venture (JV) in Mexico, reports Automotive News China on Wednesday.

A marketing manager at Changan's international business division told the news agency that top management of Magna Steyr visited Changan Auto in March in a factory tour and the two sides held a discussions on the project.

Changan said on its official website that it had signed a strategy cooperation agreement with Magna Steyr at that time.

However, a source with Magna Steyr in China said she was not aware of any agreement reached so far, though the source confirmed such a visit.

Meanwhile, Willi Ewers, vice-president of Magna Cosma International Latin America, another subsidiary of Magna International, revealed to Automotive News last month that Magna is currently pursuing talks with a Chinese automaker over joint plans to build cars in Mexico, but did not identify which.

In mid-February this year Changan signed a framework agreement with Grupo Hispanoamericano Autopark for the manufacture and marketing of Changan cars in Mexico. The first batch of vehicles was expected to be exported to Mexico by the end of 2009. The joint venture also targets exports to the U.S. and Latin American markets.