With Brazil’s national auto policy finalized, BMW has decided to go ahead with plans for an assembly plant in the country.
With sales of BMW cars up since 2009, a local factory seemed like a solid idea. But an import levy that added 30 percent to the price of a new car threatened to derail the project as late as December, 2011. According to Reuters, the Brazilian government and BMW are reportedly in talks to hammer out details regarding local parts content, and how much of it will qualify the cars as “Brazilian made”.
In the past, BMW had discussed assembling cars via CKD kits, which could allow them to test out local production without incurring significant financial risks. BMW uses local production of CKD kits in markets like Thailand, Russia, and India to produce the 3,5 and 7-Series cars for those markets.