Contract manufacturer Magna Steyr has confirmed that it will start producing the new-generation Z4 for BMW at its main facility in Graz, Austria, towards the end of 2018.

The announcement comes after a rumour emerged in March 2018 suggesting that Magna Steyr would build the upcoming sportscar for the German brand.

"Our expertise in complete vehicle engineering and production makes us unique and the ideal partner for the industry," said Günther Apfalter, president of Magna Europe and Magna Steyr.

"We are very pleased that we can further strengthen our relationship with the BMW Group and continue to solidify our overall position in the industry with new business like this," he added.

Of course, Magna has an existing relationship with the Munich-based automaker, having started production of the X3 way back in 2003. Since 2017, Magna has produced the 5 Series, while also taking on production of Jaguar’s E-Pace and Mercedes-Benz’s G-Class.

At the start of June 2018, BMW officially announced that the upcoming Z4 would be offered in M40i guise, releasing fresh images of a camouflaged prototype of what it promised would be a “purebred roadster”.

Interestingly, Magna Steyr’s statement confirming that it would produce the Z4 for BMW made no mention of the Toyota Supra alongside which it was developed.