BMW is gearing up for the start of production of its new G30 5 Series at Dingolfing plant in Germany, but apparently that’s not the only factory to produce the new midsize sedan. Magna International is contemplating a new assembly plant after securing a deal to build the new 5 Series which will help fill capacity at its flagship factory in Graz, Austria.

Production of BMW’s 5 Series will begin next year and adds to an agreement to manufacture vehicles for Jaguar Land Rover and Daimler.

2018 BMW 5-series prototype

Magna, which said it expects to produce 200,000 vehicles per year by 2018, is considering adding production capacity in China, the U.S. or Europe within the next two years.

BMW delivered 347,000 5 Series models in 2015 and it’s likely to exceed that number with the new model. BMW will also continue 5 Series production in China with its local partner Brilliance, built specifically for the Chinese market.

Magna Steyr has been BMW’s partner since the first BMW X3 and continued to manufacture cars for the Bavarians and its MINI brand. The plant currently builds the Mini Countryman and Paceman for BMW but will cease this in 2016.

The Austrian plant will also receive the production of the new BMW Z4, scheduled to launch sometimes in 2018.

[Source: Autonews]