With the newly-elected Donald Trump as President of the United States, a lot of changes have been also announced in the auto industry, changes that seemed not to favor the most important players in the branch, like BMW, Mercedes-Benz or Audi.

And the below statement was a direct hint at the warnings coming directly from the Oval Office, according to which BMW would have to change its policy concerning its plans of investing lots of money into its new facility in Mexico.

Despite the warnings, BMW Group has recently declared that it will become loyal to its initial investment plan in Mexico, stating: “We need free world trade”.

As a reminder, BMW is set to finish a new construction in Mexico, which is part of the Group`s $1 billion plan. However, these plans were initially shattered by new elected President, who declared that he will introduce heavy chargers for all cars imported in the United States. The Group`s investment plan in Mexico will go hand-in-hand with the current expansion of the Spartanburg plant in the US.

With the Spartanburg currently being the widest factory worldwide, BMW Group needs to expand its capacities overboard, choosing as the closest solution a new facility in Mexico. The plan was also confirmed last month by Dr. Ian Robertson, BMW board member:

“We need additional capacity, so we have chosen to build a plant in Mexico,” he said. The Spartanburg plant produces up to 450,000 cars per year. I don’t think there’s any discussion that BMW is not at home in the United States. Yes we are building a plant in Mexico,”

“Yes we built a plant in Brazil last year. Yes we are building plants in other parts of the world as our capacity increases. But that’s part of a normal strategic manufacturing direction.In a global setup, this is normal business. At the end of the day, our commitment to the U.S. is strong,” Robertson also added.

The new Plant in Mexico will drastically reduce the production costs, but this situation does not seem to favor the new policy from the White House.

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Marcus M.

http://www.bmwcoop.com

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The Advertising & Sell German trade journal, the BMW automaker has invested a lot of money in advertising campaigns set for the 2014 BMW i8.

We are talking about huge investments of around 16 million euros made so far, just for 55 units to be sold, which makes a fair 301,818 euros for each unit.

Surely, an advertising campaign starts way before the official launch, with the company to expect a lot of investments right from the start, and ending after the sale of the model.

More than that, the i8 campaign is particularly set through commercials, which also involve high costs, as people seeing the promotional videos, would have higher chances, with around 50% to purchase, an i8 in the near future.

The BMW is also facing limited production, due to the volume restraints from the Leipzig plant, but the German manufacturer will be able to increase its sales due to the US plant, set for the i8, which implies other costs as well.

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Marcus M.

http://www.bmwcoop.com

The post BMW Spends 300,000 Euros in Advertising Campaigns for each i8 Unit Sold appeared first on BMWCoop | BMW Blog, BMW News, BMW Reviews.

Here we are folks with fresh news about the officially announcement of the upcoming BMW X7 and the expansion that the BMW manufacturer will be planning for their plant in Spartanburg, South Carolina.

The announcement was made during a press conference where a lot of important people had the chance to gladly announce the future $1 billion dollar investment by 2016.

The investment will be made in order to expand the X lineup, with the fresh BMW X7, that will be coming perhaps next year.

Thus, the plant will increase its capacity with around 50%, talking about an increase on the vehicle manufacturing, with around 450,000 per year. The plant will be starting production first on the BMW X4.

Dr. Norbert Reithofer, Chairman of the Board of management says that besides increasing the capacity of the vehicles, the investment will also create around 800 jobs, with an overall of 8,800 workers to start production of the BMW X4 and later of the X7.

“In addition to the X3, X5, X6, and the new X4, we are today announcing another all-new, larger X model to be manufactured exclusively at this plant for our world markets: the X7,” Reithofer also mentions.

The event was also attended by U.S. Secretary of Commerce, Penny Pritzker or the Governor of South Carolina, Nikki Haley.

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Marcus M.

http://www.bmwcoop.com

The post Updated Info: Spartanburg Expansion and the Upcoming of BMW X7 Officially Announced appeared first on BMWCoop | BMW Blog, BMW News, BMW Reviews.

The Bavarians don’t really have that much of a display at the ongoing Sao Paulo Motor Show so they’re constantly distracting the folks with news about their new plant.

It isn’t as exciting as a set of new M Division, or at least, M Performance products, but the new factory means a lot for both BMW and the Brazilian government.

BMW will be producing cars at a smaller cost, breaching into a new market in Latin America and the Brazillians get new jobs, an economy boost and generally take a step forward.

While all of this seems Utopian, BMW are well aware that this is in fact a business and they have a pretty serious plan for production laid out for the upcoming factory.

The Brazilian Government just received an investment plan for the German company which calls for an investment of around 260 million USD by 2014.

This plan is currently pending approval so the factory isn’t certain yet but in reality the entire thing is just a mere formality. No government could pass up such an opportunity.

Aside from the cash flow coming in, there’s a total of 1.000 jobs openings coming in for the factory itself and quite a bit more for the suppliers.

All of these will hopefully work together to produce some 30.000 new BMW vehicles per year when everything is set and done.

To be fair, there’s plenty of other locations where new factories could pop up but BMW is going a different way as they still claim that production should follow demand.

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Marcus M.

http://www.bmwcoop.com

The post BMW details plan for Brazilian factory appeared first on BMWCoop | BMW Blog, BMW News, BMW Reviews.