Magna Steyr, the Austria-based contract producer owned by Canada’s Magna Worldwide Inc., is contemplating opening a plant within the U.S.

“We wish to enter the U.S. market. We’re intensively on the lookout for a location proper now,” Magna Steyr’s vice chairman, Kurt Bachmaier, instructed Automotive Information Canada affiliate Automobilwoche.

Bachmaier didn’t disclose the place Magna Steyr would possibly construct its plant, however mentioned the corporate is areas which have suitably certified workers, entry to suppliers and loads of house.

The corporate may also select a web site primarily based on how windy and sunny it’s as a result of it intends to generate sustainable electrical energy.

“We would like a climate-friendly plant,” Bachmaier mentioned.

He mentioned California has been dominated out as a possible web site.

President Joe Biden has signed a sweeping local weather, tax and healthcare measure into legislation that gives subsidies for electrical automobiles, however has stipulated that the EVs have to be in-built North America.

Underneath the phrases of the act, about 20 electrified fashions will qualify for EV tax credit of as much as US$7,500. Nevertheless the act ends credit for about 70 per cent of the 72 fashions that have been beforehand eligible, in keeping with the Alliance for Automotive Innovation, an trade commerce group.

Magna Steyr presently builds the BMW Z4, Toyota GS Supra, Jaguar I-Tempo, Jaguar E-Tempo and Mercedes G-Class fashions at its plant in Graz, Austria.

Manufacturing of Fisker’s Ocean full-electric SUV shall be added in November.

Magna Steyr for a few years has thought of establishing a contract meeting plant in North America. Hypothesis emerged final 12 months that the corporate might construct the lengthy anticipated Apple automotive.

Automotive Information Europe contributed to this report

Editor’s notice: An earlier model of this story incorrectly described the place last meeting of EVs should happen for a car to qualify for U.S. tax credit. Last meeting should happen in North America.