BMW To Build Cars In Brazil

Bertel Schmitt
by Bertel Schmitt

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.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href=""> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href=""> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Autobraz Autobraz on Oct 22, 2012

    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.

    • See 3 previous
    • Victor Victor on Oct 23, 2012

      @Marcelo de Vasconcellos So much for the presidential Fusion Hybrid, then.

  • Silverkris Silverkris on Oct 22, 2012

    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.

    • Autobraz Autobraz on Oct 22, 2012

      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.

  • Robert Gordon Robert Gordon on Oct 22, 2012

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

  • Lilpoindexter Lilpoindexter on Oct 22, 2012

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

    • Robert Gordon Robert Gordon on Oct 23, 2012

      In a converse to that BMW provided engines for Isettas that were built in Brazil.