BMW To Build Plant In Brazil After New Laws Finalized

Derek Kreindler
by Derek Kreindler
bmw to build plant in brazil after new laws finalized

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.

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  • Marcelo de Vasconcellos Marcelo de Vasconcellos on Oct 19, 2012

    no ckds allowed. if they build ckds the resulting product must be exported as it cannot be sold here. looks like mini is a contender to be the first cae built at bmw brasil.

  • Tstag Tstag on Oct 19, 2012

    JLR are also planning the same ways as BMW.

  • Tced2 Tced2 on Oct 19, 2012

    "Brazil's national auto policy" is apparently high tariffs or closed market.

    • See 7 previous
    • Marcelo de Vasconcellos Marcelo de Vasconcellos on Oct 19, 2012

      @Marcelo de Vasconcellos Oh th009, I almost forgot. Mitsubishi is also pumping money into its factory in Goiás. It's a small factory and will be expanded to a mid-size one. In it they will produce the Lancer and ASX, besides the already produced L200.

  • Th009 Th009 on Oct 19, 2012

    Thanks, Marcelo, for the comprehensive survey of auto manufacturing in Brazil! It'll be interesting to watch over the next few years for sure, as the rest of Rousseff's presidential term plays out.