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      03-11-2008, 10:09 AM   #1
E92Fan
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BMW moving production to US

From the BBC News website



"... The luxury carmaker BMW has announced it will invest $750m (373m) as part of plans to increase production in the US. The investment at the Spartanburg plant, South Carolina, is aimed at increasing capacity from 160,000 to 240,000 units by 2012. The move is set to create 500 new jobs and comes after the firm recently said it would cut 7.5% of its German workforce in 2008.

The firm is facing both rising costs in Europe as well as slowing US demand. Since last September, the dollar has tumbled against the euro, hurting firms that pay their costs in euros but receive payment in dollars. The euro touched an all-time high of $1.546 last week after punching through the $1.50 level at the end of February.

BMW is not the only European firm affected by the swings in exchange rates. In December last year, the head of the European aerospace and defence company EADS, Louis Gallois, gave a strong indication that if the situation persisted, some of the manufacturing of the Airbus passenger jet would have to be moved outside Europe.

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"The boost in production capacity will positively impact the logistics, suppliers, and distribution networks that support the manufacturing process," said Josef Kerscher, president of BMW Manufacturing.

The firm said the plant would produce the BMW X3, X5 and X6 models for international markets. Analysts say that by building more vehicles in its South Carolina plants, Munich-based BMW can pay less wages in euros and will also save money by sourcing locally for parts used by its US factories. This shift in production has resulted in planned cuts of 8,100 positions in Germany.

"This is completely driven by the plunge in the dollar," said Oliver Wyman, publisher of the Harbour Report on automotive manufacturing activity. "Conceivably, as the volume increases and the manufacturing system at the Spartanburg, South Carolina, plant improves, costs may come down enough to cut prices of their cars..."




I wonder how that might affect build quality amongst other things - remember that in previous years the US built cars didn't appear to be as solidly screwed together as those made in Germany....
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      03-11-2008, 10:15 AM   #2
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Quote:
Originally Posted by E92Fan View Post
From the BBC News website



I wonder how that might affect build quality amongst other things - remember that in previous years the US built cars didn't appear to be as solidly screwed together as those made in Germany....
Thats probably because Americans are screw-offs! But it might lower the prices... NOT! only increase in profits!
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      03-11-2008, 10:20 AM   #3
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Originally Posted by E92Fan View Post
From the BBC News website
I wonder how that might affect build quality amongst other things - remember that in previous years the US built cars didn't appear to be as solidly screwed together as those made in Germany....
I have been to the SC factory. The factory seems to be at least 90% robotic and the drivetrains come fully assembled from Germany, so I don't think there can be any difference in quality whether its US or German.

FYI: if you live in the US and want to take european delivery you can't get it with an X5 since they are exclusively built in the US.
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      03-11-2008, 10:30 AM   #4
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Mercedes had massive quality issues, when the MK1 ML was being manufactured in the States.

Have a look here, even some horror stories about the GL - sorry Peteg
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      03-11-2008, 10:30 AM   #5
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This makes me happy, it means they will be hiring more folks at the Spartanburg plant.
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      03-11-2008, 10:31 AM   #6
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Where are the UK market e9*s made?
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      03-11-2008, 10:49 AM   #7
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Where are the UK market e9*s made?
Mine was built at the Munich plant
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      03-11-2008, 11:11 AM   #8
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Originally Posted by needforspeed View Post
Where are the UK market e9*s made?
I think the E90s are built at Leipzig, along with the 1 series. Not sure about E91 and E92

http://www.bmw-werk-leipzig.de/leipz.../en/index.html

I see they organise tours for €120.
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      03-11-2008, 11:23 AM   #9
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i know mines german. Our X5's were built in America and the standard of quality is better than my e92....cos it dont squeak and rattle

....i blame the runflats
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      03-11-2008, 11:33 AM   #10
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i know mines german. Our X5's were built in America and the standard of quality is better than my e92....cos it dont squeak and rattle

....i blame the runflats
I know what you mean. I spent one Sunday taking off all the plastic trim in the boot to stick velvet strips along the edges to kill the squeaks.
Funny enough I got the idea from my wife's Grand Cherokee that used the same method to ensure the plastics didn't squeak.
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      03-11-2008, 11:51 AM   #11
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Wait wait wait... you mean to tell me after all the American firms that offshored manufacturing to other countries we are going to get an influx of foreign manufacturers opening/expanding shops here in the US? This is a new one...
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      03-11-2008, 11:53 AM   #12
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Quote:
Originally Posted by Dr_Dirt View Post
I have been to the SC factory. The factory seems to be at least 90% robotic and the drivetrains come fully assembled from Germany, so I don't think there can be any difference in quality whether its US or German.

FYI: if you live in the US and want to take european delivery you can't get it with an X5 since they are exclusively built in the US.
So we import germen cars from US?
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      03-12-2008, 04:05 AM   #13
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So we import germen cars from US?
Crazy world isn't it - especially as a lot of the parts are probably shipped from EU to US before assembly.
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