Racing strongly to catch up, South America is proving more and more of a new El Dorado for auto makers, even if, for now, mostly from the manufacturing costs point of view. Most of the names who mean something for the industry are already manufacturing cars in Latin American countries. Except BMW, for now...
The German premium car manufacturer, confronted with an increased interest from buyers in Brazil, is now said to be looking at erecting a manufacturing facility in the South American country, which would help it both improve the market share there and manufacture its products at a lower cost.
According to a report by Reuters, BMW set its sights on Mercedes Benz, the name that currently leads the luxury car market in Brazil and is considering building a facility there. For now, BMW is selling roughly 10,000 cars a year, a small number compared to the potential of the market (in 2010, in Brazil more vehicles were sold than in Europe's largest market, Germany - 3.33 million units).
"For us, it is really about the significance and prominence of the market, since we believe it has a big future. The development of Brazil over the past ten years is impressive," BMW head of production Frank-Peter Arndt was quoted as saying by Reuters.