In preparation for a slowdown, Valmet cut 1075 jobs (a third of its automotive workforce) last year. Production of the Sono Sion and Lightyear 0 had been planned but neither were realised as both start-ups encountered difficulties.
Facing a future without any cars to build, Valmet has further diversified into the production of components (including EV batteries) and into other industries such as defence, armoured vehicles, biomass boilers and carbon capture technology.
The loss of a car production line at Valmet would be a blow to the European automotive industry. Build quality is consistently reported to be better than that of the same models produced in their native country. According to the A-Class Forum, Finnish-built cars have better paint quality, better-applied rust protection, more closely aligned panels and fewer interior rattles.
Magna Steyr
Peak production: 168,822 units in 2019 – Jaguar E-Pace and I-Pace, Toyota GR Supra, BMW Z4 and 5 Series, Mercedes G-Class
2024 production: 71,900 units – Jaguar E-Pace and I-Pace, BMW Z4, Toyota GR Supra, Fisker Ocean and Mercedes G-Class
2026 production: GAC Aion Y, Xpeng G6 and G9, Mercedes G-Class
Magna Steyr is possibly the best-known vehicle contract manufacturer in the European automotvie industry.
The Austrian Steyr side was established in 1864 to make rifles before turning to cars in 1918. In 1934, Steyr merged with neighbouring car manufacturer Puch, and after World War II it began building Fiat cars under licence.
Canadian company Magna took a controlling stake in 1987. A 50:50 joint venture with Chrysler then resulted in the construction of a new factory line, which produced thousands of Voyagers and Jeeps in the 1990s.
By 2002, Magna had taken full ownership of Steyr and the Chrysler production line, expanding contract production of specialist vehicles to include four-wheel-drive cars (the Mercedes E-Class and ML and the BMW X3) and other small-volume models (like the Saab 9-3 Convertible, Mercedes SLS, Peugeot RCZ and Aston Martin Rapide).
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