BMW Group Announces Partnership With Magna Steyr For New BMW X3

Working together on Development and Production

Munich. The BMW Group and SFT (Steyr-Daimler-Puch Fahrzeugtechnik AG & Co. KG),
Graz (Austria), a subsidiary of Magna Group, have signed a cooperative
agreement covering the development and manufacture of the new BMW "X3" Sports
Activity Vehicle. The detailed vehicle concept worked out by engineers from the
BMW Group was forwarded to Magna Steyr Engineering for development. Production
will be taken over by Magna Steyr Fahrzeugtechnik in Graz. The contract was
signed yesterday in Munich.

By partnering with SFT on the realisation of the BMW "X3" project, the BMW
Group is optimising its own resources and pushing forward with its product
offensive. In Magna Steyr, the BMW Group has selected a partner with multiple
years of experience. There has been in-depth cooperation between the companies
for years in the field of BMW four-wheel drive technology in particular.

"Those who work alone can only accumulate; but those who cooperate
intelligently can multiply," says Professor Dr.-Ing. Joachim Milberg, Chairman
of the Board of Management of BMW AG. "Our cooperation with Magna Steyr
increases the speed and flexibility of our company and is a further milestone
in the consistent implementation of our product offensive."

The BMW "X3" is an expansion of the X family, and is an independent new
development. As with all BMW vehicles, some elements will use BMW module units.
All the vehicle components in the BMW "X3" will be signed off by the BMW
Group's Development Departments. In addition, core areas of competence, such as
design, engine construction, purchasing and customer service will remain the
sole responsibility of the BMW Group.

Dr.-Ing. Burkhard Göschel, Member of the Board of BMW AG, Development: "We are
making sure, right in the development process, that the "X3" will be a BMW
through and through. Components where BMW is a step ahead in terms of expertise
will continue to be developed by BMW engineers solely."

In order to integrate Magna Steyr in to the worldwide BMW development network,
associates from Magna Steyr Fahrzeugtechnik will be trained at the BMW Group
facilities. Further details about the product will be published as usual before
the market launch.

Magna Steyr Fahrzeugtechnik will be building a new assembly building in Graz
for production. The existing paint shop and shell construction facilities will
be modified. The total project-related expenses total comes to EUR 500 million
($ 230 million). Around 2,500 associates will be employed in production. The
BMW "X3" will be produced in Graz for exports to markets around the world. The
production plants in Graz are designed for a capacity of over 300 vehicles per
day. Production will be adjusted flexibly to demand. It is intended that series
production should start in 2004.

Magna Steyr has regularly been awarded top marks in the highly regarded quality
surveys carried out by J.D. Power & Associates. Magna Steyr Engineering will be
employing some 400 engineers on series development.

"The BMW order is a further recognition of our overall vehicle competence,
which is based - at the Graz site in particular - on
100 years of tradition and experience in automobile technology," explained
Siegfried Wolf, President & CEO, Magna Steyr, the parent company of SFT.

The BMW Group in Austria
The BMW Group is already important for Austria as a commercial location.
Overall, the BMW Group's involvement in Austria has already created over 8,000
direct and indirect jobs and led to the investment of around EUR 2 billion.

Last year, exports by the BMW Group in Austria exceeded imports by over 55%
(exports: EUR 2.2 billion, imports: EUR 1.4 billion). The largest engine
factory in the BMW Group today has been located in Steyr (Upper Austria) since
1979. In the year 2000, around 2,500 associates produced over 620,000 four and
six cylinder petrol and diesel engines, which is around two thirds of all BMW
engines built worldwide. At the same time, the location is also the diesel
competence centre within BMW.

The BMW Group's sales company in Austria, BMW Austria (founded in 1978), was
able to deliver 11,675 cars and 1,891 motorcycles to customers in 2000.

For questions please contact:

Corporate Communications

Jürg Dinner, Corporate Communications, Business and Finance
Telephone: (+49 89) 382-24118, Fax: (+49 89) 382-24418

Dr. Tobias Nickel, Product and TechnologyTechnology Communications
Telephone: (+49 89) 382-27072, Fax: (+49 89) 382-27563

Media Website: www.press.bmwgroup.com
e-mail: presse@bmw.de