SHENYANG, China — BMW and Brilliance Automotive will invest $830 million to expand their existing assembly plant in this northern China city and build a second production facility to open in early 2012.
"Our plant has reached its capacity limit, so we are now taking the next step," said Friedrich Eichiner, BMW's finance boss and vice-chairman of BMW Brilliance Automotive. "The decision to build a second plant demonstrates that we are investing in our future in China and that we intend to participate in the strong growth in the Chinese market."
BMW and Brilliance jointly produce the BMW 3 Series and 5 Series in Shenyang, where current capacity is being expanded from 40,000 to 75,000 units a year. The second plant will further boost annual capacity to 100,000 units, with provisions to further increase capacity as needed, up to 300,000.
BMW said China is its fourth-largest global market. It has sold a record 72,000 vehicles in China in the first 10 months.
Inside Line says: BMW is riding the same wave of enthusiasm and demand for luxury brands in China as Audi. — Paul Lienert, Correspondent
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