By on October 22, 2012

Today, BMW confirmed what you could read here last week: The Bavarians will build a BMW factory in Brazil. BMW submitted an investment plan to the Brazilian government, BMW says.

Subject to government approval, a plant with a 30,000 unit per year capacity could be finished by 2014. Investments over the next few years will total more than 200 million euros. The plant will reside in the Joinville region of Santa Catarina.

This will be BMW’s first car factory in Brazil. The company has been manufacturing BMW motorcycles at its Manaus location since 2010.

BMW sold a total of 15,214 imported vehicles in Brazil in 2011.


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17 Comments on “BMW To Build Cars In Brazil...”

  • avatar

    Wouldn’t they have more allies in Argentina?

    All joking aside, the race to the bottom of the labor market doesn’t seem like a very swift long term move for BMW. Brazil isn’t known for its stable currency or economy. Perhaps some manufacturing jobs will help lessen the large income gaps and solidify what has known to be somewhat of a fake economy in Brazil.

  • avatar

    Freaking lucky people. I wish I had the model of Lichtenstein’s art car.

  • avatar

    “Thank you for the model car. Is my facilitation fee inside?”

  • avatar

    Huge mistake

    • 0 avatar

      Can’t be any worse than building SUVs in South Carolina. I’m surprised they haven’t expanded that facility to make 3s easier to sell in the US, or even create an Americanized version, like Honda, Toyota and VW have shown is profitable.

  • avatar

    Joinville, the Manchester of Brazil (seriously, this is how they call themselves!)

    This factory is in Santa Catarina State. Many towns in this State were founded by German immigrants. There is Oktoberfest in Blumenau and in Pomerode people still speak their German dialect in the streets.

    Nevertheless, with labour costs being what they are in Brazil, I wonder if they should have gone to another country.

    • 0 avatar

      I was thinking if that is also supermodel Gisele Bundchen’s home state, given that she is of German ancestry, but she is from Rio Grande do Sul, which is a neighboring state. They also have lots of people (maybe more) who are of Italian descent there.

      • 0 avatar

        Driving through Santa Catarina can be a fun cultural experience. At one moment you are in a typical German town and 7km down the road and you are in an Italian one. The advertisements in the street change (language), the restaurants, people’s faces. Another 10km and you are back in a German town. Beautiful, Gisele Bundchen level girls abound in all of those towns. And they are the nicest people.

    • 0 avatar

      So Autobraz, ze Germans have a thing for Manchester. The region of Juiz de Fora where Mecedes has their white elephant (for which I’m still paying) is called Manchester Mineira.

      I would have wished the guv shoved them to Pernambuco somewhere. But like my state authorities at the Mercedes thing our lame-ass leaders seem wonderstruck when they see some uber machines. 30 000 cars? How many jobs?

      Maybe it’ll make guv acquisitions of BMWs easier. I hope the cars’ tight ride hurts the sensitive backsides of our loved leaders.

  • avatar

    I’d think that given the size of the Brazilian market, the growth of the middle class, skilled workforce and supplier infrastructure, it made sense for BMW to get in and look to the long term future. Fiat, VW, GM, Ford and Renault/Nissan are all there.

    Labor costs are just a small part of the equation – you see them going up a lot in China, too, yet we don’t hear of any international automaker getting out due to labor costs.

    • 0 avatar

      True. And supplier infrastructure and skilled workforce levels in Joinville are great. And close enough to Porto Alegre, Curitiba and Sao Paulo to access even more resources.

  • avatar
    Robert Gordon

    While we’re on the subject of BMW’s, what ever happened to the final chapter in the ‘M’ story?

  • avatar

    BMW built the first MINI engines at TRITEC, a joint venture with CHrysler in Brazil.

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