BMW May Build Second NA Plant To Fend Off German Rivals
In its battle against Mercedes-Benz and Audi for record sales, BMW is mulling over the possibility of a second plant in North America.
Bloomberg reports the automaker would place its second factory in Mexico, with two sites under consideration. The decision to expand will take a few months according to BMW production chief Harald Krueger, Should the move be given a green light, the Mexican plant is likely to build the 3 Series.
The second factory would add to the long-term growth strategy BMW is using to fend off its German premium market competitors in a heated battle for records global sales, fueled by growing demand in the United States and China. Mercedes will add the C-Class to its Alabama facility in June with a new plant in North America due near the end of this decade, while Audi is in the middle of setting up shop in Mexico with a $1.3 billion plant set to produce crossovers beginning in 2016.
Previously, BMW announced it would invest $1 billion to expand its South Carolina plant by 50 percent in 2016, as well as add the X7 large SUV to the X Series lineup currently produced in the plant.
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
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I'm already not buying a German car after MY95, but I will enjoy a certain amount of schadenfreude informing yuppie jagoffs of their future faux exclusive Audi and BMW's assembly location.
Why not build another plant in GERMANY?
New plants will not be built in Germany. The Social Democratic Party, center/left, shares power with Merkel's party. Means more redistribution and less business incentive to expand. The German economy is weak and the EU is on life support meaning contracting auto demand.
Is there really such a bad wait list that the market is defined by limited production and not demand? I don't think either of the large BMW dealers in my Major American City has ever had to wait more than 2 weeks for a car that wasn't ordered to spec - and those typically account for less than 10% of the vehicles sold there, last I heard. When VW started doing it, it was justifiable because they had Mercedes-penis-envy. What does BMW (or VAG) have to gain from increasing output if the demand isn't there?