BMW wants to hike output capacity at Spartanburg site as it chases record sales

Article by Christian A., on March 20, 2014

BMW is seeking to hike production capacity at its Spartanburg site in South Carolina and is launching 12 new models as it tries to post record sales and increase its pretax profit in 2014. BMW's Spartanburg plant has an annual production capacity of around 350,000 and builds makes SUVs like the X3, X4, X5 and X6 models.

"The U.S. will stay a market with great potential for us. This is why we are evaluating the possibility of increasing capacity in the U.S.," chief executive Norbert Reithofer said during BMW’s annual results press conference. The carmaker’s investments in China will enable it to hike production capacity in the country to 400,000 cars, from 300,000 in 2013.

BMW reiterated its target to post a substantial rise in sales volume in 2014, after delivering a record 1.96 million cars last year. "We expect group profit before tax to rise significantly in the current year, despite ongoing volatile business conditions," Reithofer said.

BMW said its automotive division logged a 14-percent drop in fourth-quarter earnings before interest and tax to EUR1.77 billion ($2.46 billion), exceeding analysts’ expectations of EUR1.68 billion. The forecasts were made assuming that political and economic conditions remain stable this year, and that European markets will be on steady recovery, BMW said.

The carmaker is expecting substantial growth in markets outside of Europe, including high single-digit growth in North America and low double-digit growth in China. "We see BMW's confidence as a major positive trigger for the stock," analysts at ISI Global said in a note.

The German carmaker said it expected sales in the second half of the year to be higher than in the first six months due to a large number of model launches, including of the compact 2-series coupe and the 2-series Active Tourer.

Topics: bmw, production

If you liked the article, share on:

Comments

Recommended

Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
The year 2018 marks the golden anniversary of Subaru of America. Of course, the company will celebrate 50 years of being at the helm of the brand’s crusade in North...
by - February 24, 2017
During car crashes and accidents, there are times that its occupants can’t get out easily. There are times when the only way to get out of that situation is to...
by - February 23, 2017
Could this be a special version of Ferrari’s much acclaimed LaFerrari? No matter how we look at it, the patent images for this sports car from Ferrari indicate its striking...
by - February 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries