Contract manufacturer Magna International and Chinese electric‑vehicle maker XPeng are reported to be in advanced discussions over a manufacturing tie‑up that could restart full vehicle assembly at Magna’s lightly used Hoče plant in Slovenia.

Deal details in local reporting

Slovenian news site 24ur reported on Nov. 5 that talks between Magna and XPeng are “very advanced” and that the Slovenian government is aware of the negotiations; the story quoted state secretary Zdravko Počivalšek saying officials have been briefed. The article said the project under discussion could be worth “more than half a billion euros” and could create “more than a thousand” jobs.

A separate piece in Dnevnik, citing Austria’s Kleine Zeitung, says the broader programme of Chinese partnerships with Magna could include several brands and that a joint venture between Magna and XPeng for Hoče has been "colported" to have a capacity of up to 100,000 vehicles a year, with complete assembly there potentially starting at the end of 2028 or in early 2029. Dnevnik’s report (dated Nov. 4) frames the Hoče plan as one element of a wider push by Magna to fulfil contracts from Chinese carmakers.

Magna’s existing European role

Magna is already carrying out end‑of‑line assembly for Chinese OEMs in Graz, Austria. Company investor materials and quarterly transcripts confirm Magna has active complete‑vehicle programmes for XPeng and other China‑based brands at its Austrian operations, a capability that supporters say can be extended to neighbouring Hoče if contracts are signed.

What this means for the market

If the talks crystallise, the immediate impacts would be twofold: first, a re‑use of idle European assembly capacity and the creation of local supplier demand; second, a further acceleration of Chinese OEM localisation in the EU to avoid import measures and to shorten supply chains. Reports that multiple Chinese groups (MG/SAIC, Changan and XPeng) are seeking production partnerships with Magna underline how contract manufacturers in Central Europe are being courted to absorb the rapid export growth of Chinese brands.

However, Magna and Slovenia’s government have declined to give public details beyond confirming confidential discussions and standard non‑comment responses; the reporting so far is based on local press and industry sources rather than an official signed agreement. Any final investment, job count, timing or capacity remains conditional on contract signatures and public confirmations.

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Sources: Dnevnik, 24ur