Photo: BMW
It’s been in the news for quite a while now: BMW wants a second North American plant as soon as possible. Calculations seem to approach the final stretch and the management is going to make a decision in this regard, before the summer break, according to CEO Norbert Reithofer.
So far, we’ve heard plenty of stories about where the new manufacturing facility will be built. Despite having diverging opinions on the matter, every speculator out there says the same thing: the country that will be chosen would have to be part of the NAFTA (North American Free Trade Agreement). That makes the choice easier, reducing it to Canada, the USA and Mexico.
Out of the three, Mexico seems the best choice, due to the cheaper work force, bigger tax exempts it could offer BMW and the position right between the Spartanburg plant in the US and the new one in Brazil.
This would be yet another daring move in BMW’s plans to dominate the premium segment. After announcing a ramp up of production in South Carolina of 40 percent, they are now looking for even more production capabilities.
The problem is that none of these plans seem to include Germany. Everything is aimed outside of Europe, where sales have been struggling since 2007, reaching the lowest points in the company’s near 100-year history.
Of course, on an official statement, BMW will always claim that such a move is aimed only at fighting off the competition from Mercedes-Benz and Audi but the lower wages for the workers and reduced taxes they have to pay are also a pretty big incentive to move to new continents.
Furthermore moves could include a second plant in China, in collaboration with their Chinese partner, Brilliance. The new 10-year contract signed this week allows the two companies to work even closer, at least until 2028. And, with the communist country becoming the biggest auto market in the world, profits will probably rise even higher.
Out of the three, Mexico seems the best choice, due to the cheaper work force, bigger tax exempts it could offer BMW and the position right between the Spartanburg plant in the US and the new one in Brazil.
This would be yet another daring move in BMW’s plans to dominate the premium segment. After announcing a ramp up of production in South Carolina of 40 percent, they are now looking for even more production capabilities.
The problem is that none of these plans seem to include Germany. Everything is aimed outside of Europe, where sales have been struggling since 2007, reaching the lowest points in the company’s near 100-year history.
Of course, on an official statement, BMW will always claim that such a move is aimed only at fighting off the competition from Mercedes-Benz and Audi but the lower wages for the workers and reduced taxes they have to pay are also a pretty big incentive to move to new continents.
Furthermore moves could include a second plant in China, in collaboration with their Chinese partner, Brilliance. The new 10-year contract signed this week allows the two companies to work even closer, at least until 2028. And, with the communist country becoming the biggest auto market in the world, profits will probably rise even higher.
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