Magna International will manufacture the new 5 Series sedan for the BMW Group at its contract Graz vehicle assembly facility in Graz, Austria.
The production, which is expected to begin in 2017, will be split with BMW Group's manufacturing plant in Dingolfing, Germany.
Magna Europe and Magna Steyr president Günther Apfalter said: "We are proud to continue our longstanding partnership with the BMW Group.
"The new collaboration emphasizes our customer's continued trust in our contract manufacturing capability and our unmatched leadership position in this area."
BMW AG Board of Management member for Production Oliver Zipse said: "In the last 15 years of our collaboration, Magna has proven to be a trusted partner with expertise in world-class production capabilities.
"Therefore, Magna is exactly the right choice to share production of our new BMW 5 Series."
The successful strategic partnership between Magna and the BMW Group began in 2001. Magna started manufacturing the BMW X3 in 2003, followed by the MINI Countryman in 2010 and the MINI Paceman in 2012. The new BMW 5 Series will succeed the two MINI vehicles.
With new business awards from BMW and JLR starting production in 2017, and a contract extension on the Mercedes-Benz G-Class, Magna's Graz facility is expected to reach approximately 200,000 vehicles per year by 2018.
