The premier auto manufacturer, BMW, introduced a new compact SUV (the X3) in an effort to grab a greater share of the overall luxury car market. Because its own resources were pretty well tapped out by a large number of new vehicles BMW had already introduced, the automaker decided to have the new SUV built by the parts manufacturer, Magma International, based in Toronto. The vehicles would be manufactured by Magma in an Austrian plant.

Required:

Comment on the strategic issues surrounding BMW's introduction of the X3 and the use of Magma International to produce the vehicle. Do you think the company made the right decisions? Why or why not?