BMW Group Plans Additional €400 Million Investment in China

AutoInformed.com BMW Brilliance hybrid. Photo courtesy of and Copyright  BMW all rights reserved

A 5-series parallel hybrid shown at Shanghai has a 160 kW engine with two turbochargers, and an electric motor with an output of 70 kW.

The BMW Group in Munich said that it will expand manufacturing capacity in China by more than €400 million in conjunction with its Chinese Joint venture partner. Norbert Reithofer, BMW chairman, said this was in addition to a previously announced €560M investment to expand a manufacturing plant in Shenyang with joint Brilliance.

The additional investment, shared between the two partners, will be used to build a press shop, a paint shop and to expand the infra-structure at the new plant in Tiexi in the Shenyang region in preparation for higher production capacity.

The BMW Group has been producing BMW 3 Series and 5 Series models in Shenyang with Brilliance since 2003. China has since become the BMW Group’s third-largest market worldwide. The company sold 167,116 vehicles in China during the past financial year – an increase of 84%. In the first four months of 2011, deliveries in China rose by 70.1% to 79,306 automobiles.

BMW Group announced that it would build a second production plant in China in November 2009. The BMW X1 is slated to be produced at the new plant in 2012. This will add more than 4,000 new jobs over the coming years, in addition to the 5,000 jobs so far created in Shenyang.

The planned production capacity will increase to more than 100,000 vehicles per year at the existing Da Dong facility and, over the medium term, to 200,000 at the new plant in Tiexi. Over the long term, the two plants will have the combined potential for more than 300,000 vehicles per year – depending on demand.

The program is the latest indicator of the success of Chinese government dictated industrial policy, which requires joint ventures to sell in the world’s largest auto market and insists on local engineering and development programs. (BMW Brilliance Automotive to Show Plug-in Hybrid at Shanghai; BMW Says Record Sales and Earnings Coming in 2011)

About Ken Zino

Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
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