BMW Engines Build in America?
According to a recent article by The Detroit News, BMW is looking into expanding their vehicle production and also possibly building engines in North America. It's said that this would be done to capitalize on growing vehicle demand.
Building engines outside of Europe, was something that BMW just didn't do, until last year. Production of 4-cylinder engines began in Shenyang, China, to supply their local plants. This new engine plant may find its home in either Mexico or the US. A decision on this project could come in 2014.
Here are some highlights from the Detroit News article:
“As part of our long-term growth strategy, we’re frequently looking at different countries for possible locations of future production facilities,” Mathias Schmidt, a BMW spokesman, said by phone. “No decisions have been made yet, though, for an additional plant.”
BMW, Mercedes-Benz and Audi are adding production in North America to take advantage of sales-growth potential that contrasts with stagnating demand in their home market of Europe.
The Spartanburg factory will start making BMW’s new X4 SUV in 2014. Stuttgart-based Daimler expanded Mercedes production at Tuscaloosa in mid-2013 as part of a global effort to meet sales growth, and it will add the next version of the midsized C-Class sedan there in 2014. Ingolstadt-based Audi laid the cornerstone in May for a $1.3 billion, 150,000-car plant in San Jose Chiapa, Mexico, that will begin making the Q5 SUV in 2016.
The company’s expansion is part of its effort to maintain an edge over Audi and Mercedes-Benz, which have both vowed to surpass BMW in sales by the end of the decade.
Read the full article from Detroit News here.
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