DETROIT, Nov 20 (Reuters) - China's Guangzhou Automobile

Group (GAC) will build its electric AION V model at a Magna

facility in Austria, the two companies said on Thursday, a

strategy that should help GAC avoid the EU's tariffs on

China-made EVs.

The GAC vehicle will be produced at Magna's

facility in Graz, Austria, which can make

gasoline-powered, hybrid and electric vehicles on shared lines.

Last year, the EU introduced provisional tariffs of up to

37.6% on China-made EVs, describing their imports as a potential

flood of unfairly subsidized EVs.

"Europe is a vital market in GAC's global development," said

Wei Haigang, president of GAC International.

Roland Prettner, president of the Magna Steyr contract

manufacturing business, said its expertise will allow automakers

like GAC to localize production efficiently.

The GAC deal comes after Magna said in September it would

build battery-powered models for XPeng ( XPEV ) at the same

Graz facility.