BMW to build X3 in US

[Kirby]

Washington DC May 15, 2007; The AIADA newsletter reported that BMW, in order to counter a strong euro, will build the next-generation X3 mid-size SUV in its U.S. plant in Spartanburg, South Carolina, the company said on Tuesday.

According to ABC News, the world's largest premium carmaker will expand the production capacity of its U.S. plant in Spartanburg from the current 140,000 to well over 200,000 vehicles per annum.

Chief Executive Norbert Reithofer said in mid-March the group needs to build up its production volume in Spartanburg to roughly 200,000 units or more in the next two to three years to help hedge against currency fluctuations.

"This is a part of our future strategy," Chief Executive Norbert Reithofer said at BMW's annual meeting. "With this we're reducing our (foreign exchange) risks for the U.S. dollar."

 

[Average Jae]

even amidst complaining about gas prices, suvs are still good in the states? this is America afterall!

 

[deutsch100]

Ughhh, I guess good for the USA, but bad for the venerable Magna firm in Austria (and all the workers) that builds the X3 and the G Class.

Until now, the X3 was the posterchild for bad quality, and was an embarassment for BMW. I really hope that the quality will not suffer, at the hands of the Americans. Generally speaking, German built BMWs and Mercedes are better built than Americans (look at how bad the ML was), with a Teutonic attention to detail and precision. It's not that German workers are better than American workers, it's just that Germans have always had more attention to detail, and are more driven (pushed) and much more disciplined. Also, they are paid so much more, so I firmly believe they care more about their work/art!

 

[Big Daddy]

I read that BMW wants all there 4X4's built here.

 

[Kirby]

Ughhh, I guess good for the USA, but bad for the venerable Magna firm in Austria (and all the workers) that builds the X3 and the G Class.
...

Generally speaking, German built BMWs and Mercedes are better built than Americans (look at how bad the ML was), with a Teutonic attention to detail and precision. It's not that German workers are better than American workers, it's just that Germans have always had more attention to detail, and are more driven (pushed) and much more disciplined. Also, they are paid so much more, so I firmly believe they care more about their work/art!

Maybe it won't impact Magna too seriously, I assume they will continue non-US market production. They are diverse, also building cars for Saab and Chrysler in Europe.

I agree with your observations about German culture and attention to detail and discipline. Very true.

 

[Kirby]

Adam, you were right. It's going to be a pretty big impact on Magna - 45% of the factory production:

Just after losing its bid to acquire a stake in Chrysler Group, the Canadian Tier 1 supplier Magna International Inc. has reported that BMW, wishing to protect itself from future forex risk, has informed Magna of its intention to commence in-house assembly of the next generation BMW X3 in Spartanburg, South Carolina, following the end of production of the current-generation BMW X3 SUV at MagnaSteyr’s Austrian contract assembly facility.

While the end of production for the programme is at the discretion of BMW, MagnaSteyr currently expects BMW X3 production to end in 2010. Magna is currently a significant supplier to BMW's Spartanburg facility.

Magna has been the sole production source of the BMW X3 since the launch of the vehicle in 2003. BMW X3 production represented approximately 45% of total vehicles assembled at Magna Steyr in 2006. Magna says it is in discussions with customers about future potential assembly opportunities for its Graz facility, where its other customer is DaimlerChrysler – for Chrysler Group models soon to pass from DaimlerChrysler to the Cerberus-owned Chrysler Group.

 

[deutsch100]

Adam, you were right. It's going to be a pretty big impact on Magna - 45% of the factory production:

Just after losing its bid to acquire a stake in Chrysler Group, the Canadian Tier 1 supplier Magna International Inc. has reported that BMW, wishing to protect itself from future forex risk, has informed Magna of its intention to commence in-house assembly of the next generation BMW X3 in Spartanburg, South Carolina, following the end of production of the current-generation BMW X3 SUV at MagnaSteyr’s Austrian contract assembly facility.

While the end of production for the programme is at the discretion of BMW, MagnaSteyr currently expects BMW X3 production to end in 2010. Magna is currently a significant supplier to BMW's Spartanburg facility.

Magna has been the sole production source of the BMW X3 since the launch of the vehicle in 2003. BMW X3 production represented approximately 45% of total vehicles assembled at Magna Steyr in 2006. Magna says it is in discussions with customers about future potential assembly opportunities for its Graz facility, where its other customer is DaimlerChrysler – for Chrysler Group models soon to pass from DaimlerChrysler to the Cerberus-owned Chrysler Group.

Yeah, I thougt so Kirby, as I was aware that the X3 is their highest volume car. The G Class is made in such low numbers, and I think they just do a part of the SAAB. Poor Austria!