BMW to open up plant in Brazil
Prompted by strong luxury vehicle sales in South America, BMW has announced it has started construction of its own Brazilian plant, which is expected to come online by the fall of 2014.
The company logo of car manufacturer BMW on a car in Munich, Germany. BMW plans to open up a plant in Brazil late next year.
Matthias Schrader/AP/File
Just days after Jaguar Land Rover announced it will start聽, BMW has announced it has started construction of its own Brazilian plant, which is expected to come online by the fall of 2014. BMW already has a motorcycle plant in Brazil but strong sales of luxury聽聽in not only Brazil but much of the South American region has prompted the German automaker to start production of vehicles locally as well.
鈥淥ur strategic principle of 鈥榩roduction follows the market鈥� has previously proven effective in markets such as the U.S. and China,鈥澛犅爌roduction chief Harald Kr眉ger said in a statement. 鈥淸The principle] will also ensure our success in Brazil as an important future market.鈥�
The location of the new BMW plant is the Brazilian city of Araquari, and the site will include a body shop, a paint shop and an assembly facility. The plant will only be set up to produce 30,000聽聽initially but gradually BMW will expand capacity.
Models destined to be built at the new plant include the 1-Series, 3-Series, X1 and X3, as well as the MINI Cooper Countryman.聽聽and Countryman will share a platform, which is why BMW will be able to economically build both at a single plant. It鈥檚 not clear if the models built at the plant will be limited to sale in South America.
Once built, the plant will extend BMW鈥檚 production network, which currently comprises 29 production and assembly facilities in 14 countries. Other luxury makes that have announced plans to build vehicles in Brazil include Jaguar Land Rover as well as聽听补苍诲听.