BMW Group agrees cooperation with SFT for new BMW "X3"

The BMW Group and SFT (Steyr-Daimler-Puch Fahrzeugtechnik AG & Co.
KG), Graz (Austria), a subsidiary of Magna Group, have signed a
cooperation agreement covering the development and manufacture of the
new BMW "X3" Sports Activity Vehicle. The detailed vehicle
concept worked out by engineers from the BMW Group was forwarded to
Magna Steyr Engineering for series development. Production will be
taken over by Magna Steyr Fahrzeugtechnik in Graz. The relevant
contract was signed yesterday in Munich. Through this cooperation on
the realisation of the BMW "X3" project, the BMW Group is
optimising its own resources and pushing forward with its product
offensive. In Magna Steyr, the BMW Group has found a partner with many
years' experience in the realisation of vehicle projects. There has
been in-depth cooperation between the companies for years in the field
of BMW four-wheel drive technology in particular. "Those who work
alone can only accumulate; but those who cooperate intelligently can
multiply", says Professor Dr.-Ing. Joachim Milberg, Chairman of
the Board of Management of BMW AG. "Our cooperation with Magna
Steyr increases the speed and flexibility of our company and is a
further milestone in the consistent implementation of our product
offensive." The BMW "X3" is an expansion of the X
family, and is an independent new development. As with all BMW
vehicles, some elements will use BMW module units. All the vehicle
components in the BMW "X3" will be signed off by the BMW
Group's Development Departments. In addition, core areas of competence,
such as design, engine construction, purchasing and customer service
will remain the sole responsibility of the BMW Group. Dr.-Ing.
Burkhard Göschel, Member of the Board of BMW AG, Development:
"We are making sure, right in the development process, that the
"X3" will be a BMW through and through. Components where BMW
is a step ahead in terms of expertise will continue to be developed by
BMW engineers solely." In order to integrate Magna Steyr in the
worldwide BMW development network, associates from Magna Steyr
Fahrzeugtechnik will be trained in the BMW Group. Further details about
the product will be published as usual before the market launch. Magna
Steyr Fahrzeugtechnik will be building a new assembly building in Graz
for production. The existing paint shop and shell construction
facilities will be modified. The total project-related expenses total
comes to EUR 500 million. Around 2,500 associates will be employed in
production. The BMW "X3" will be produced in Graz for markets
throughout the world. The production plants in Graz are designed for a
capacity of over 300 vehicles per day. Production will be adjusted
flexibly to demand. It is intended that series production should start
in 2004. Magna Steyr has regularly been awarded top marks in the famous
quality surveys carried out by J.D. Power & Associates. Magna Steyr
Engineering will be employing some 400 engineers on series development.
"The BMW order is a further recognition of our overall vehicle
competence, which is based - at the Graz site in particular - on 100
years of tradition and experience in automobile technology",
explained Siegfried Wolf, President & CEO, Magna Steyr, the parent
company of SFT.