BMW to Double Engine Production in China to Catch Up with Audi

BMW Shenyang 1 photo
Photo: Picture Alliance
The results over the first two months of 2014 are encouraging but, at the same time, showed interesting info about the sales and which markets should be further spurred on for BMW.
As you probably already read here, China became the biggest market for BMW last year, overpassing the US for the first time and accounting for 391,713 units overall and posting a 19 percent increase overall. Meanwhile, the United States claimed just 376,636 units, falling behind.

Over the first two months of the year, though, Audi sales overpassed BMW’s for the first time in the last 9 years but only by a mere 383 cars. Even so, the biggest market for Audi was also China and that’s where the Bavarians are now looking into, according to Auto News China.

In a recent interview, officials told the Chinese media that they intend to expand the production facility and aim to double the engine manufacturing capacity so that they can keep the costs down and close the gap with Audi both on sales and on profits.

Teaming up with their joint-venture partner, Brilliance China Automotive Holdings, they plan to make over 400,000 units a year, at a new plant in Shenyang, according to Bloomberg.

Of course, this will help reduce the costs and increase profits but it will also diminish the waiting time Chinese customers have to cope with at the moment. Furthermore, this way the Germans will reduce the exchange-rate risks associated with the ever more flamboyant international trades.
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