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Discussion Starter · #1 ·
Due to %60 extra taxes applied to some US manufactured goods, main Turkish BMW dealer (Borusan) is not bringing/importing X5's to Turkey for 2 years now. X5s are being manufactured in US Spartanburg plant.

Can BMW allocate some of the G05 capacity in its Thailand Rayong plant to Turkey?

Also if you leave the political issues aside a BMW plant in Turkey (city of İzmir) would be a good business idea considering the market size and labor costs.
 

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I thought all X5's globally were built in the US. I'm not sure about the idea of building BMWs in Turkey when they are already being build in Germany and Austria. In 2019 BMW sold 324,000 units in the US and 9,000 units in Turkey.
 

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2021 X5 xDrive45e, 2018 Tesla Model 3
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BMW has local "assembly" plants around the world basically to get around local tax issues.
 
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Discussion Starter · #4 ·
BMW has 19 plants worldwide, they are built localy to reduce logistics costs, to take advantage of country specific stimulus offers and also to find a work around the tax issues. Rayong plant is producing X5s their webpage is:


As far as I know Rayong/Thailand started its X5 production 1-2 years ago to provide X5s to China, it did so because of extra taxes implemented by China on US products. In Turkey we also have a similiar issue, so far we got the X5s from Spartanburg but this %60 extra tax makes everything ridiculus. We also have other additional ridiculus tax %s applied on cars so it is not logical to import them. Thats why a plant in Turkey might be a good idea to reduce base cost. Yes bimmer's sales volume is low not because we dont drive or not interested but because we are not stupid to pay $300k for a brandnew X5 (that has 2litre diesel engine!). Most big Europe countries have 50 million population but Turkey is 80 and we are already paying 3 times the amount US-UK folks are paying to a single car.
 
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Discussion Starter · #5 ·
Also fyi, if I remember correctly the Spartanburg plant was built (in late 90's) to reduce the effect of %10 tax that US was implementing on the imported cars at that time. If the car was built in the US the tax was %2 on the imported parts. BMW built the plant to gain this %8 difference, service the obviously big market quickly and compete with MB.

In 2019 VW announced its plans about building a new plant in west coast of Turkey but later cancelled it in 2020 I think due to political pressure... I hope the situation improves, in the meantime I hope folks in BMW can hear me, allocation of some capacity from Rayong would help.
 

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2021 X5 xDrive45e, 2018 Tesla Model 3
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There's gotta be more of the 18 other plants that could be used to send X5s over. Malaysia has one as well I believe that specifically assembles X5s. That's not that far from Thailand and is also a relatively small market so if they've got one there for X5s, I'd think there'd be more closer to Turkey than Southeast Asia.
 
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Discussion Starter · #7 ·
First, I found out that there are actually 30 plants worldwide, the 19 I mentioned were the ones that had a website thru official bmw website, interesting.

There is not much info online about the Malaysia plant's current capacity, I only found this info so far:

The plant is both an engine assembly and a car assembly plant. It does assemle 5 series and will do 7 as well but not sure about X5, if you know a website please provide the link I'd like to read about it, thanks. Also, it was interesting to learn that bmw yearly sales volume in Malaysia is around 9,000 units as well.
 

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Damn, 9000 units is nothing really. I didn't have an article, but I saw it mentioned in at least two YouTube videos. I think they were Singapore based reviews of the X5 rather than Malaysia specifically, but geographically it's basically the same thing. They were just brief throwaway lines along the lines of "Assembled here in Malaysia" or something like that.
 
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