This article looks at the Toronto-based auto parts manufacturer Magna International. Magna, the world's seventh-largest auto supplier ($13 billion revenue in 2002), has turned its European subsidiary Magna Steyr into the only parts company offering automakers fully outsourced engineering and production. A car manufacturer provides Magna the styling for a new model and a chassis to build it off of, and Magna executes the engineering, builds the assembly line and produces the cars. Except for a few small, mostly ill-fated efforts, you won't find American branded manufacturers having their cars built and engineered at outside plants. Overcapacity at company-owned factories and union opposition have slowed such plans. But European manufacturers like Bayerische Motoren Werke, whose plants are already running flat out, are embracing the practice. BMW says that's why it turned to Magna to build its small SUV, the X3, which will debut in a few months. Saab, too, turned to Magna when it decided to develop a convertible along with its new 9-3 sports sedan. Magna Chief Executive Belinda Stronach is confident that North American carmakers will be inspired to do more outsourcing. But she has yet to win big contracts from Detroit, where the Big Three now use just 82% of capacity, according to CSM Worldwide, and aren't looking for new reasons to shut plants and incur layoff costs. Both GM and Ford have experimented with farming out assembly work but have had questionable experiences. INSET: Scandal in Canada.