GAC and Magna Partner to Manufacture the Aion V in Europe and Sidestep Tariffs

Guangzhou Automobile Group (GAC) is positioning itself to join the growing European market. This move seeks to sidestep rising import tariffs.

GAC has confirmed the manufacturing of its all-electric Aion V SUV in Austria. Magna has a plant in Graz with a history of building high-end models. That factory has produced vehicles for various automakers, including the Mercedes-Benz G-Class and the Jaguar I-Pace. Recent changes in client contracts have left open capacity on Magna’s lines. Consequently, the company has been on the lookout for new manufacturing partners.

This collaboration allows GAC to deliver locally assembled electric vehicles. The move aims to accelerate the electrification strategy and extend its supply chain in the region. Local production is a crucial step for the brand’s long-term competitiveness in Europe.

Assembly Precedent: The Xpeng Method

Magna already assembles Xpeng’s G6 and G9 SUVs for Europe in Graz since September. The Xpeng process proves to be somewhat unconventional. Vehicles are first built in China, then partially disassembled. They are then shipped to Austria for reassembly before final delivery.

This approach lets Xpeng pay tariffs only on parts. They avoid paying the full tariff that taxes complete vehicles. This is a practical and viable workaround in the current trade climate. It remains unconfirmed if GAC’s Aion V will follow this method, but the option seems plausible.

Aion V Electric SUV Technical Specifications

The Chinese company GAC unveiled the Aion V during the second quarter of last year. The model has been enjoying strong sales in recent months. It is underpinned by the firm’s modular AEP architecture. This SUV is equipped with an electric motor producing 181 hp.

Buyers can choose among several battery packs. Options include 62 kWh, 75 kWh, and 90 kWh. The largest package offers a CLTC range of up to 466 miles (750 km). GAC plans to introduce the SUV in more than 30 global markets. These include Australia and various European countries, significantly expanding its international footprint.