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BMW Mulls Building More in U.S. With Latest 3 Series
MUNICH, Germany — Auto executives are responding to pretty much any hot question during turbulent times such as these with the fallback answer: "Safe to say, everything is on the table these days." In BMW's case, what's on the table is expanded production of the new 3 Series at its U.S. plant.
For 2011, Volkswagen and (by association) Audi are working on a new plant in Tennessee that will build the A4 and Q5, among other models, and Mercedes is looking to get C-Class production into the Alabama plant by 2011 as well. Now it's BMW's turn to up the ante with higher-volume production from its South Carolina location.
A BMW representative told Inside Line in Munich that once the new production capacity currently being added at Spartanburg is finished at the end of this year, "within 18 months from today we can consider a new phase of expansion at the U.S. plant."
With X3 production coming to Spartanburg to fill the current new capacity, this "new phase," the source tells IL, would involve the 3 Series, which uses the same architecture. The United States accounts for roughly 25 percent of all 3 Series sales worldwide, and 3 Series sales make up close to 35 percent of total U.S. sales. In brief, this new phase would be a major expansion for BMW as it tries to head off more significant future cash losses in North America.
What this means to you: BMW would be able to more comfortably keep 3 Series pricing contained and stop losing money based on exchange-rate issues. — Matt Davis, Correspondent
For 2011, Volkswagen and (by association) Audi are working on a new plant in Tennessee that will build the A4 and Q5, among other models, and Mercedes is looking to get C-Class production into the Alabama plant by 2011 as well. Now it's BMW's turn to up the ante with higher-volume production from its South Carolina location.
A BMW representative told Inside Line in Munich that once the new production capacity currently being added at Spartanburg is finished at the end of this year, "within 18 months from today we can consider a new phase of expansion at the U.S. plant."
With X3 production coming to Spartanburg to fill the current new capacity, this "new phase," the source tells IL, would involve the 3 Series, which uses the same architecture. The United States accounts for roughly 25 percent of all 3 Series sales worldwide, and 3 Series sales make up close to 35 percent of total U.S. sales. In brief, this new phase would be a major expansion for BMW as it tries to head off more significant future cash losses in North America.
What this means to you: BMW would be able to more comfortably keep 3 Series pricing contained and stop losing money based on exchange-rate issues. — Matt Davis, Correspondent
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