BildflugJaguar Land Rover (JLR) has signed a manufacturing agreement with contract manufacturer Magna Steyr that will see it assembling vehicles for JLR at its facility in Graz, Austria. The division of Magna International already produces the Mercedes-Benz G-Class and the Peugeot RCZ there. It also makes the Mini Countryman and Mini Paceman for BMW at the Graz plant.

JLR would not confirm which model Magna would be making. Neither would Jaguar Land Rover confirm what its planned output was or which of its facilities would be supplying the kits for assembly.

In a statement it said that, with its three plants in the UK at close to operating capacity, the collaboration with Magna Steyr would support further growth plans.

"The UK remains at the centre of our design, engineering and manufacturing capabilities,” Dr Ralf Speth, Jaguar Land Rover's CEO. “Partnerships such as this will complement our UK operations and engineering.”

The carmaker has plants at Castle Bromwich, Halewood and Solihull in the UK Midlands.

“The signing of this contract with Jaguar Land Rover reflects the trust in our capability and heritage as a vehicle contract manufacturer,” said Günther Apfalter, president of Magna Steyr and Magna International Europe. “The partnership with Jaguar Land Rover brings a new customer to our Graz plant. As always, we will work with our fullest commitment and dedication to ensure that we meet our customer's high expectations.”

Jaguar Land Rover’s is also making vehicles in China at its 50:50 joint venture plant with Chinese carmaker Chery Automobile and is currently building a production facility in Brazil.