Fiat is planning to commission Austrian engineering group, Magna Steyr, to design and build the replacement for the existing Fiat Stilo, with a late 2006 production date being targeted.

Fiat's CEO Sergio Marchionne is reported to be anxious to get the replacemen into production as soon as possible, and Magna Steyr are believed to have been the only engineering concern to offer him a suitable timetable. With sales of the current Stilo running at just over 100,000 per year (as opposed to an original target of 400,000 units per year), Marchionne is in a hurry to get the new model into the showrooms, with a 'world preview' at the 2006 Paris Mondial de l'Automobile being his immediate target, and with deliveries commencing in early 2007.

The popular C-segment is an area Fiat cannot afford to be underweight in as it seeks to boost sales and adhere to a strict timetable that has been laid out in order to return the Italian automaker to profit.

An original, conventional, Stilo replacement design was canned last year, after being regarded as "much too conservative", while fresh new  proposals, presented just a few months ago, come with too long a lead time to impress Fiat's new hard hitting boss. However with significant work having being put into the development of the new platform and its associated technology thus far, Magna Steyr could easily pick up the project as it stands, to help reduce lead times.

Instead of conducting the project 'in-house' Marchionne has turned his attention outside the group, and the established Italian automotive design sector, with Magna Steyr as mentioned being believed to be the only engineering group he has contacted who were able to meet his demands. "We need this new car at the speed of light, and Magna Steyr was the only contract engineering supplier able to guarantee the tight schedule we asked for," Marchionne is reported by Automotive News Europe as saying. On top of this, development costs are expected to be slashed by about 30% to 40%.

Austrian engineering group Magna Steyr offer a full service for automobile manufacturers, from design to assembly. In short, Magna Stery is basically an OEM without a brand, and the world's largest at that. The acquisition of Steyr-Daimler-Puch by Magna International of Toronto in 1998 saw a huge reorganisation.
 

Firstly this included the selling of all OEM activites such as the production of military vehicles, agricultural tractors, marine engines and the like, and the restructuring of the company as a dedicated partner to automotive industry. Expansion at Magna Steyr's main plant in Graz since the restructuring has been significant. In 1998, annual production surpassed the 120,000 mark. Now this lies over the 220,000 units per year mark. If Magna Steyr were to take on the Fiat Stilo project, this would represent a double boost in their annual OEM production, add in the new Lancia Delta which will utilise the new Stilo's floorpan and mechanicals, and cost efficiencies and viability rise further.

Magna-Steyr comment that "As a strategic value-adding partner of vehicle manufacturers, Magna Steyr commands all aspects of automobile production characterizing automakers. This is the necessary know-how to manage the serial production of a vehicle in a quick, reliable and cost-effective manner. Our competencies and technologies in project management, manufacturing engineering, procurement, logistics, metal forming, in the body shop, the paint shop, and in assembly are state-of-the-art. Of course, we are always looking for continuous improvement as well as new and innovative solutions.

"Highly flexible, Magna Steyr is uniquely set for the serial production of niche vehicles and derivatives off high-volume vehicles. Peak-shaving, CKD production, ramp-up support, and phase-out production complete our range of capabilities. The whole ensemble of its groups allows Magna Steyr to offer automotive manufacturers turnkey projects from concept development to volume production - a scope of services unrivalled in the automotive supplier industry."

Magna Steyr have over 100 years of tradition and experience in vehicle manufacturing, as early as 1900, the company’s founder - Johann Puch - built his first vehicle in Graz. The last half century has seen them co-operating with a whole series of international carmakers, including BMW, Mercedes-Benz and VW, experience that has spread out to four wheel drive, off-road vehicles as well as sportscars. Magna Steyr currently assemble the Chrysler Voyager, Jeep Grand Cherokee, BMW X3, Saab 9-3 Convertible, Mercedes-Benz G-Class (since 1979) and recently the Chrysler 300C Sedan and Touring. They also engineered the highly successful Audi TT Coupe and Roadster.

Magna Steyr's long production history has also included a previous involvement with Fiat, when they built the iconic Fiat 500 under license as the Puch 500. Interestingly, in the light of the new Lancia Delta (which will be based largely on the next generation Fiat Stilo), Magna Steyr's invaluable expertise in engineering four-wheel-drive systems could result in a worthy successor to the Integrale. Four-wheel drive references include the Audi A6 Allroad, Jeep Grand Cherokee (all three generations), Mercedes G-Class, Mercedes E-Class 4Matic, Mercedes M-Class, Opel Vectra 4x4, Renault Scenic 4x4 and the Volkswagen Golf Country (not to mention a string of utility vehicles).

It is reported that assembly of the new Stilo model will take place at Fiat's Cassino plant, with Magna Steyr taking over the required facilities to oversee the project. (Cassino is one of Fiat's most advanced plants, and production of the new Fiat Croma has just begun there). It is also interesting to note finally that Herbert Demel, Fiat Auto's previous CEO, who was fired by Marchionne earlier this year, in fact arrived at Fiat having been headhunted from the top job at Magna Steyr. Demel has since become President of the global Powertrain Group, which forms part of Magna International Inc. Here, he has assumed responsibility for one of the most important powertrain enterprises in the world.