BMW Group Plans Plant in Brazil

[Jason]

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BMW Group Plans Plant in Brazil

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BMW Group plans plant in Brazil

Start of production scheduled for 2014
Planned capacity of approx. 30,000 units per year
Planned investment of more than 200 million euros

Munich/Brasilia - October 22, 2012... The BMW Group plans to build a new plant in Brazil. “We welcome the new framework for investments in Brazil, based on the recently adopted “Inovar Auto” legislation. We have submitted an investment proposal for our planned new plant to the Brazilian Government,” said Ian Robertson, Member of the Board of Management, responsible for Sales and Marketing BMW, at a meeting with Brazilian President Dilma Rousseff in the capital, Brasilia, on Monday.

Subject to final approval of the plans by the Brazilian Government, the goal is for production to begin in 2014. Investments over the next few years will total more than 200 million euros. Plans call for a production capacity of approximately 30,000 vehicles per year. More than 1,000 new jobs will be created at the new production site – as well as additional jobs within the supplier network as a result of the new plant. Negotiations with the State Government of Santa Catarina are already well underway for the new facility in the Joinville region.

“Brazil is a market with tremendous potential for the future for the BMW Group. For that reason, we are strengthening our long-term commitment to this country,” Robertson explained. “This will create the necessary conditions for us to maintain the balance of sales between Europe, Asia and the Americas – and, therefore, for the long-term success of our company. With this move, the BMW Group is applying its strategic principle of ‘production follows the market’, which has already proved successful in markets such as the U.S., China and India.”

The new plant in Brazil will extend the BMW Group’s production network which currently comprises 29 production and assembly facilities in 14 countries. The company has been manufacturing BMW motorcycles at its Manaus location since 2010.

The BMW Group has had a local sales company in Brazil since 1995. A total of 15,214 vehicles were sold in Brazil in 2011. This represents a growth rate of almost 54%. BMW Motorrad also increased its sales by 55% in 2011 to reach a total of 5,442 motorcycles.


Photo below: Ian Robertson, Member of the Board of Management of BMW AG, Sales and Marketing BMW (right), presents a BMW Art Car model to the Brazilian President Dilma Rousseff (left) on the occasion of the announcement of a plan to build a new plant in Brazil (ctr. Raimundo Colombo, Governor of the State of Santa Catarina)

[bimmerjph]

Good. More plants in different locations means more flexibility. I was wondering when BMW would move into SA.

[Tsuvoi]

That's quite a departure from BMW's stance of these past few months, they were about to throw in the towel on doing any investments in Brazil due to the ultra-protectionist policies in place on foreign investment and trade. I guess Dilma finally saw the light (not).

Brazil is such a sweet market for auto-makers, sell bare-bone cars for 3x the price and laugh all the way to the bank at the suckers who pay US $120k for a base-model 3 series. Don't forget the corrupt gov share and of course a big fat dealer's cut and you have the perfect recipe for a new plant so you can make even more profit!

Quite amazing that they can still find 15,000 rich suckers to buy their cars and pay an extra US $20k to bulletproof them.

[BMW M Power Mexico]

I guess it's Audi who made the smart move then regarding their production plans in LATAM. Pity.

[Erich2142]

Originally Posted by bimmerjph

Good. More plants in different locations means more flexibility. I was wondering when BMW would move into SA.

They already make the X6 in South Carolina

[positiveions]

Originally Posted by ft1337

That's quite a departure from BMW's stance of these past few months, they were about to throw in the towel on doing any investments in Brazil due to the ultra-protectionist policies in place on foreign investment and trade. I guess Dilma finally saw the light (not).

Brazil is such a sweet market for auto-makers, sell bare-bone cars for 3x the price and laugh all the way to the bank at the suckers who pay US $120k for a base-model 3 series. Don't forget the corrupt gov share and of course a big fat dealer's cut and you have the perfect recipe for a new plant so you can make even more profit!

Quite amazing that they can still find 15,000 rich suckers to buy their cars and pay an extra US $20k to bulletproof them.

interesting point of view

[NRG]

Pity, BMW becoming another "people's wagon", more with each year.

[rayusaFL]

Originally Posted by ft1337

That's quite a departure from BMW's stance of these past few months, they were about to throw in the towel on doing any investments in Brazil due to the ultra-protectionist policies in place on foreign investment and trade. I guess Dilma finally saw the light (not).

Brazil is such a sweet market for auto-makers, sell bare-bone cars for 3x the price and laugh all the way to the bank at the suckers who pay US $120k for a base-model 3 series. Don't forget the corrupt gov share and of course a big fat dealer's cut and you have the perfect recipe for a new plant so you can make even more profit!

Quite amazing that they can still find 15,000 rich suckers to buy their cars and pay an extra US $20k to bulletproof them.

+1

[brunox2]

I can't say for all brazilians, but it's life, if we want a BMW we have to pay what they want. Here it's really very expensive the cars, not just BMW, but all cars.

But comparing to US for example, we pay much less in medical & dental insurance, apartaments/houses, etc.

Each country has your particularities. And from the news, they tell that will decrease the cost from 15% to 40%, then things will be very interesting.

[Tsuvoi]

Originally Posted by brunox2

I can't say for all brazilians, but it's life, if we want a BMW we have to pay what they want. Here it's really very expensive the cars, not just BMW, but all cars.

But comparing to US for example, we pay much less in medical & dental insurance, apartaments/houses, etc.

Each country has your particularities. And from the news, they tell that will decrease the cost from 15% to 40%, then things will be very interesting.

Well last time I heard about it medical costs were very high, insurance or not. For most people that means having to go to the public hospital and being from Brazil you know what that means...

Also housing can be very expensive in SP, but yeah if you go to the country side you're not going to pay much (also you won't have roads to drive your BMW anyway).

It's good to see you believe what the TV says my friend... but as everything "we'll see".

[sheepboy]

Originally Posted by YOYO1111

People in Brazil can't even afford the 1/18 model she's holding. Let alone a $120k 328i.

That is in contrast to the US, where "people" can easily afford $120k cars. One just needs to drive around any American town to see how common cars over $100k are in the land of the free. USA, USA!

[brunox2]

Originally Posted by ft1337

Well last time I heard about it medical costs were very high, insurance or not. For most people that means having to go to the public hospital and being from Brazil you know what that means...

Also housing can be very expensive in SP, but yeah if you go to the country side you're not going to pay much (also you won't have roads to drive your BMW anyway).

It's good to see you believe what the TV says my friend... but as everything "we'll see".

I'm not saying that the cost WILL decrease, however I can't that won't.

About the other stuff, you should know better before talking I can't waste my time explaining to you, you should "hear" from the people that actually knows something.

[magrelo1]

I guess everyone is missing the point here...
I dont think the target for the plant in Brazil is the brazilian market, and yes, the incentives in taxes and lower shipping costs to other countries closer to Brazil.
We should all agree that South Africa wouldn't have a plant if it wasn't for some type of incentives from their government...

[r3dbimmer89]

So that means no plant in Mexico now????

[DieselDiner]

Originally Posted by r3dbimmer89

So that means no plant in Mexico now????

Correct.

[Fraggy]

Originally Posted by r3dbimmer89

So that means no plant in Mexico now????

Thank goodness on that, but still...

[sour07]

Originally Posted by Fraggy

Thank goodness on that, but still...

Racist much?

[Cuz5150]

Why not build the plant in the USA???
I like how BMW has to go to Brazil and Kiss the ring of the Brazilian president and
She'll approve/ Let them build the plant very shady.....whata BS

[gds52]

Then we ll have South American Delivery!!!!

[caseyjohnso]

I guess everyone is missing the point here

[Mysecondwife]

I will be applying for a job in Brazil come 2014. Good choice BMW...Joinville is nice!!

[Tsuvoi]

Originally Posted by brunox2

I'm not saying that the cost WILL decrease, however I can't that won't.

About the other stuff, you should know better before talking I can't waste my time explaining to you, you should "hear" from the people that actually knows something.

Is that the famed Brazilian friendliness at work here? lol. Oh crap I just saw your sig, I didn't realize you were one of the 15,000 suckers; You must have felt insulted by my earlier comment, I understand.

Let me know if you need some lube I hear it eases the pain.