VIENNA – Magna Steyr will manufacture two new sports cars based on a cooperative project between BMW and Toyota at its plant in Graz, Austria, the local Kleine Zeitung newspaper reports.

The automakers in 2013 reached a cooperative agreement that includes the joint development of a sports car platform.

According to the report, Magna Steyr is expected to launch production of the BMW sports car, a successor to the BMW Z4, in 2018, with the Toyota model to follow some months later. Plans call for combined production of at least 60,000 vehicles per year, the newspaper says.

It would be the first time Magna Steyr would build a car for a Japanese automaker.

Currently the contract assembler manufactures Mercedes-Benz G-Class, Mini Countryman and Paceman models. Production of both Mini cars will be phased out later this year.

Magna Steyr will launch new models for BMW and Jaguar Land Rover in 2017. The names of the new cars to be made in Austria haven’t been announced yet, but media reports suggest the company will manufacture the new-generation BMW 5-Series in Graz.

It is expanding some parts of the Graz facility for new projects.

In related news, Magna Steyr says its contract with Daimler to produce the Mercedes-Benz G-Class has been extended until 2023.

Magna Steyr has assembled about 23,000 vehicles this year through March, down 15% from like-2015.

The company says it plans to produce about 200,000 units in 2018.