BMW is becoming more of an American company...
Officially Welcomed to the 'Fest
Join Date: Feb 2006
Does it matter to any of you if the 3 series will be built in the US?
I have always heard of ancedotal reports that US built BMWs aren't as reliable...but I have never owned one.
Interesting that Mercedes is now building C-Class in US, after 25 years of German production.
There is some speculation that the next 3 will be built in US....seems to be one reason why the new US built X3 is cheaper than outgoing model.
Wonder how the German auto unions feel about this?
BMW may build fourth model in U.S. to challenge Lexus
Chris Reiter / Bloomberg News
Bayerische Motoren Werke AG, the world's biggest maker of luxury cars, may add a fourth model to its South Carolina factory to challenge U.S. market leaders Toyota Motor Corp.'s Lexus and Daimler AG's Mercedes-Benz.
"There's always room on top," Chief Executive Officer Norbert Reithofer said in Spartanburg, S.C., at an event to mark the addition of the factory's third model, the X3 sport-utility vehicle. "We have ambitious goals for the U.S."
BMW spent $750 million to make room for the revamped X3 in Spartanburg, which comes in addition to the plant's current X5 and X6 SUVs. An additional volume model for the U.S., the world's largest market for luxury cars, could be added in South Carolina, said Frank-Peter Arndt, BMW's production chief.
BMW is investing in the facility to reduce foreign currency exposure, which currently stands at more than $14 billion, Reithofer said. About 70 percent of the vehicles built at the site are exported from the U.S., and more than 65 percent of the value of a vehicle built in South Carolina is sourced from North America, BMW said.
"It would make sense for BMW to assemble the 3-Series compact in the U.S. to compete with the Mercedes-Benz C-Class," said Rebecca Lindland, an analyst at IHS Automotive in Lexington, Mass. The BMW brand sold 397,103 3-Series cars last year out of total deliveries of 1.07 million.
"The 3-Series is a no-brainer, if you're looking to reduce currency exposure; that's their volume player," Lindland said. "That's a business case that's got to be studied."
Daimler, the world's second-largest maker of luxury cars, said last December production of its best-selling C-Class sedan would be moved to its Alabama factory, ending the model's assembly in Sindelfingen, Germany, after more than 25 years.
BMW fell 7 cents, or 0.1 percent, to 50 euros at the 5:30 p.m. close of trading in Frankfurt. The stock has jumped 57 percent this year, valuing the carmaker at 31.9 billion euros.
The maker of BMW, Mini and Rolls-Royce models plans to sell at least 250,000 vehicles in the U.S. in 2010, a gain of more than 10 percent, and aims to expand its share, executives at the Munich-based carmaker said yesterday. The U.S. high-end market will gradually return to pre-crisis levels over the next three to four years, the CEO said. BMW is targeting sales of 300,000 in the U.S. longer term.
From The Detroit News: http://detnews.com/article/20101014/...#ixzz12M6GrIRa