- Jun 13, 2008
BMW spending another billion in the U.S. to expand
Heavy fluctuations in the value of the U.S. dollar versus the Euro has made building vehicles in the U.S. a very attractive proposition for European automakers. BMW is looking to expand its U.S. operations by spending over $1B to increase capacity at its South Carolina plant, add more parts distribution centers, and expand its U.S. headquarters in New Jersey. The majority of the money, about $750M, will be spent on increasing production at its plant South Carolina plant from 160,000 units to 240,000 by 2012. The move makes abundant sense given the fact that the German automaker is taking a massive hit by shipping vehicles from higher cost Europe to the lower cost U.S.
BMW is spending $100M on expanding its headquarters and another $170M to increase parts distribution centers, which should be welcome news for BMW owners who can face high wait times for parts. BMW has been tearing up the sales charts in the U.S. for quite a while, and with an added $1B getting spent on facilities Stateside, it looks like the Germans want the good times to continue to roll.
[Source: Automotive News - sub. req'd]