Bmw will build a new plant in Brazil

Article by Christian A., on October 19, 2012

BMW will construct a new car assembly plant in Brazil, with hopes that it will benefit from the emerging market for luxury cars in the largest economy in Latin America. Finance chief Friedrich Eichiner said last Thursday that the company is on course with its plan and is prepared to file its investment plan with the government in Brazil.

He didn’t offer information about the size of the investment while talks with the government are ongoing. According to Brazil\'s trade minister Fernando Pimentel when he was interviewed on local radio, BMW will make an announcement within days about this plan. For several months, it was unsure whether this plant will be put up. Sources said that Brazil\'s government had begun to implement more obstacles to trade that may mean that BMW\'s investment plans would be unprofitable.

Last March, BMW threatened to withdraw the plan after Brazil imposed a new import levy in December. BMW estimated that this would raise the car’s price by 30%. Since then, the government and BMW have been in talks over the number of local components required to classify the vehicles as built in Brazil.

In a previous statement, production chief Frank-Peter Arndt has said that BMW will begin with an assembly operation where cars are built from \"completely-knocked-down\" kits composed of major component groups.

This is a common first step to get round import duties and reduce financial risks when entering a market that has yet to be tested. The volumes could be as low as the 2,000 units that BMW began with initially at its assembly plant in Chennai, India, in March 2007. It had an initial investment of less than 20 million euros ($26.18 million).

Its smallest full-scale manufacturing plant is Rosslyn in South Africa, with over 53,000 cars built last year. Arndt said that the Brazil plan originally meant that it will select a location either in the province of Sao Paolo or Santa Catarina. Eichiner has declined to say if this plan has changed.

Topics: bmw, brazil, plant

If you liked the article, share on:

Pin It

Comments

Recommended

Top Gear has revealed that for its “Stars in a Reasonably Fast Car” segment, it will now be using a slightly enhanced Toyota GT86, which in the U.S. market is...
by - March 24, 2017
Porsche is laying aside any plans of pushing another hybrid hypercar into their line-up -- at least not at this time. Oliver Blume, Porsche Global Chief confirmed in a recent...
by - March 24, 2017
Since 1993, Lexus has produced 4 generations of the Lexus GS, with the GS F amongst its newest member of the family. Unfortunately, rumors are also heating up that the...
by - March 24, 2017
In a leaked image following a presentation held in China, we learned that Czech automobile manufacturer Skoda will soon unveil 2 more new SUVs in China, resulting in a four-model...
by - March 24, 2017
McLaren is said to be designing the next generation of Sports Series, which could include a V6 hybrid among its powertrain options. It was earlier reported that the British automaker...
by - March 24, 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